US stocks plunge on Fed concern over Ukraine tension
August 6, 2014 4:54 am
US stocks erased the previous trading day’s rally after it resumed its selloff with energy shares plunging as tensions in Ukraine escalates. The benchmark indexes of the US are at a low last seen in May of this year.
All major indexes are down with the Dow Jones Industrial Average losing 0.84% or 139.81points to 16,429.47 after a 199-point drop in the intraday trade. Intel led the blue-chip losses for the Dow with 27 of the gauge’s 30 components dropping. The S&P 500 Index shed 0.97% or 18.78 points to 1920.21 as all of its ten sectors go into negative territory, energy shares pacing the decline. The Nasdaq Composite Index lost 0.71% or 31.05 points to 4,352.84. The fear gauge of investors or the CBOE Volatility Index surged by a near 12% to 16.87 with ongoing Ukraine tension leaving investors worried. The trend showed that for every share that climbed, more than two dropped. The New York Stock Exchange witnessed almost 703 million shares traded while composite volumes approached 3.5 billion.
Energy companies are one of the lead laggards in the trade with Halliburton Co. and Pioneer Natural resources Co. plummeted by more than 3.4%. Target Corp. shed 4.4% following a disappointing revenue report as Canadian operations continue to have trouble as US sales decline. Meanwhile, Coach Inc. managed to increase their shares after a better-than expected earnings report along with Dollar General Corp. who added 3.4% after saying that it will be weighing a bid for Family Dollar Stores Inc.
Managing director of equity trading at Stifel, Nicolaus & Co., Lou Shaduk told Bloomberg that the market was “jittery.” Shaduk cites the immediate selloff after Poland warns about Russian invasion. Shaduk said, “You have Polish Minister Sikorski talking about Russian forces poised to pressure or invade Ukraine and that’s all the buyers needed today to go into hiding.”
Russian President Vladimir Putin has commanded a response to the US and European sanctions with an expansion for the Russian troops on the Ukraine border that may be an indication that Putin plans on an invasion according to the warnings of Poland’s foreign minister.
The material has been provided by InstaForex Company – www.instaforex.com
US stocks erased the previous trading day’s rally after it resumed its selloff with energy shares plunging as tensions in Ukraine escalates. The benchmark indexes of the US are at a low last seen in May of this year.
All major indexes are down with the Dow Jones Industrial Average losing 0.84% or 139.81points to 16,429.47 after a 199-point drop in the intraday trade. Intel led the blue-chip losses for the Dow with 27 of the gauge’s 30 components dropping. The S&P 500 Index shed 0.97% or 18.78 points to 1920.21 as all of its ten sectors go into negative territory, energy shares pacing the decline. The Nasdaq Composite Index lost 0.71% or 31.05 points to 4,352.84. The fear gauge of investors or the CBOE Volatility Index surged by a near 12% to 16.87 with ongoing Ukraine tension leaving investors worried. The trend showed that for every share that climbed, more than two dropped. The New York Stock Exchange witnessed almost 703 million shares traded while composite volumes approached 3.5 billion.
Energy companies are one of the lead laggards in the trade with Halliburton Co. and Pioneer Natural resources Co. plummeted by more than 3.4%. Target Corp. shed 4.4% following a disappointing revenue report as Canadian operations continue to have trouble as US sales decline. Meanwhile, Coach Inc. managed to increase their shares after a better-than expected earnings report along with Dollar General Corp. who added 3.4% after saying that it will be weighing a bid for Family Dollar Stores Inc.
Managing director of equity trading at Stifel, Nicolaus & Co., Lou Shaduk told Bloomberg that the market was “jittery.” Shaduk cites the immediate selloff after Poland warns about Russian invasion. Shaduk said, “You have Polish Minister Sikorski talking about Russian forces poised to pressure or invade Ukraine and that’s all the buyers needed today to go into hiding.”
Russian President Vladimir Putin has commanded a response to the US and European sanctions with an expansion for the Russian troops on the Ukraine border that may be an indication that Putin plans on an invasion according to the warnings of Poland’s foreign minister.
The material has been provided by InstaForex Company – www.instaforex.com
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