Home ›› 08 Mar 2022 ›› Stock
US stock index futures slid on Monday, with banks and travel stocks falling the most as the prospect of a ban on oil imports from Russia pushed Brent to over $130 a barrel and added to concerns over spiraling inflation and slowing economic growth.
Countries from Japan to the United States discussed banning Russian oil imports in response to the country’s invasion of Ukraine, fueling an 18 per cent jump in Brent to its highest since 2008. That was on the top of a near 21 per cent surge last week.
Russia announced new “humanitarian corridors” on Monday to transport Ukrainians trapped under its bombardment - to Russia itself and its ally Belarus, a move immediately dismissed by Kyiv as an “immoral” stunt.
Citigroup Inc fell 3.9 per cent in premarket trading, the most among the big banks, as Jefferies downgraded the stock to “hold” from “buy”. The S&P 500 banks index is among the worst performers so far this year as investors worried about how the West’s sanctions against Moscow may affect the international financial system.
Shares of megacap growth companies including Tesla Inc dropped more than 1 per cent each.
Cruise operator Royal Caribbean Cruises Ltd and carrier United Airlines Holdings Inc slipped 5.0 per cent and 3.6 per cent, respectively, to lead losses among travel companies.
Energy stocks jumped, with oil producer Occidental Petroleum climbing 8.6per cent. Potash fertilizer makers Mosaic Co, CF Industries Holdings Inc and Nutrien Ltd rose between 3.8 per cent and 5.6 per cent following brokerage actions.
Defense stocks L3Harris Technologies Inc, Northrop Grumman Corp and Lockheed Martin Corp gained between 2.6 per cent and 4.9 per cent.
At 05:38 am ET, Dow e-minis were down 496 points, or 1.48 per cent, S&P 500 e-minis werdown 65.5 points, or 1.51 per cent, and Nasdaq 100 e-minis were down 224.5 points, or 1.62 per cent.
Wall Street ended lower on Friday as the war in Ukraine overshadowed an acceleration in US jobs growth last month that pointed to strength in the economy.
The CBOE volatility index, also known as Wall Street’s fear gauge, rose for the second straight day and was last trading at its highest level since February 24.
