US Market extends losses as bans on Russian oil imports

9 Mar 2022 , 08:55 AM

The US stock market finished volatile session lower on Tuesday, 08 March 2022, extending losing streak for fourth consecutive day, as investors continued unloading a wide range of shares on concerns about stagflation prospects after crude oil prices continued to skyrocket as President Joe Biden officially announced a U.S. ban on the import of Russian oil, liquefied natural gas, and coal in response to Russias unprovoked invasion of Ukraine.

At the close of trade, the Dow Jones Industrial Average index declined 184.74 points, or 0.56%, to 32,632.64. The S&P500 index dropped 30.39 points, or 0.72%, to 4,170.70. The tech-heavy Nasdaq Composite Index shed 35.41 points, or 0.28%, to 12,795.55.

Advancing stocks outnumbered declining ones on the NYSE exchange by 1703 to 1607 and 167 closed unchanged. In the NASDAQ, 2459 issues advanced, 2267 issues declined, and 302 issues unchanged.

Total 9 of 11 major S&P 500 sector indexes declined, with bottom performing issues were consumer staples (down 2.64%), healthcare (down 2.1%), industrials (down 0.63%), and financials (down 0.55%), while top gainers included energy (up 1.4%) issue.

President Joe Biden announced a U.S. ban on Russian oil and other energy imports, ramping up a campaign against Moscow in retaliation for its invasion of Ukraine.

President Joe Biden also acknowledged that many European countries would not be able to join the U.S. in the ban but said his administration would work with their partners to reduce their dependence on Russian energy.

The European Unions executive arm the European Commission had pledged earlier today to reduce Russian gas imports by two-thirds by the end of 2022.

While markets had priced in the bans to an extent, the crisis is fuelling worries about slower economic growth coupled with higher commodity prices and inflation even as the Federal Reserve prepares to begin raising interest rates.

ECONOMIC NEWS: US Wholesale Inventories Rise 0.8% In January- US wholesale inventories climbed by 0.8% in January after surging by an upwardly revised 2.6% in December, the Commerce Department reported on Tuesday. The continued increase in wholesale inventories came as inventories of durable and non-durable goods rose by 0.8% and 0.9%, respectively. The Commerce Department also said wholesale sales soared by 4.0% in January after climbing by 0.8% in December. Sales of durable goods spiked by 5.7% during the month, while sales of non-durable goods shot up by 2.4%.

US Trade Gap Widens To New Record High In January- US trade deficit widened to $89.7 billion in January from a revised $82.0 billion in December, reflecting a jump in imports and a steep drop in exports, the Commerce Department reported on Tuesday. With the bigger than expected increase, the trade deficit reached a new record high. The wider trade deficit came as the value of imports shot up by 1.2% to $314.1 billion in January after surging 1.7% to $310.3 billion in December.

Among Indian ADR, Wipro added 3.3% to $7.48, HDFC Bank added 1.4% to $55.25, ICICI Bank added 2.5% to $16.80, Tata Motors added 0.6% to $24.90, and WNS Holdings added 0.25% to $80.52, and Dr Reddys Labs added 4.47% to $50.43. INFOSYS rose 3.3% to $23.33 and Azure Power Global rose 15.8% to $19.57.

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