US stocks slumped on Thursday as escalating tensions in Ukraine rattled investors. The Dow Jones Industrial Average (DJIA) fell by more than 150 points, while the S&P 500 and Nasdaq Composite both dropped by more than 1%.
The sell-off came as Russian troops reportedly took control of a key airport in the Crimean region. The move heightened concerns that Russia could seek to annex the territory, which would be a major escalation in the crisis.
Oil Price Hike
Oil prices also surged on the news, with Brent crude hitting a six-month high. The jump in oil prices helped to push the price of gasoline up by more than 3% in New York.
The turmoil in Ukraine has caused volatility in global markets over the past few weeks. However, most analysts believe that the sell-off is being overdone, and that the US economy remains in good shape.
“The market is overreacting a bit,” said Michael James, managing director of equity trading at Wedbush Securities. “The fundamentals are still pretty good in the United States.”
Despite the sell-off on Thursday, stocks remain near record highs. The DJIA is up by more than 8% since the beginning of the year, while the S&P 500 is up by more than 10%.
Instability in Wall Street
Wall Street stocks plummeted on Monday as fears mounted over the escalating crisis in Ukraine. The Dow Jones Industrial Average tumbled more than 150 points, or 0.9%, while the S&P 500 Index fell by 1.1%. The Nasdaq Composite Index was also down, dropping by 1.4%.
Meanwhile, oil prices surged as traders worried about potential supply disruptions. Brent crude prices were up more than 2% on the day, reaching a high of $108.80 per barrel. US crude prices also rose, hitting a peak of $103.02 per barrel.
The turmoil in Ukraine has rattled global markets in recent weeks, and investors are growing increasingly concerned about the potential for further escalation. Russian forces have been massing on the border with Ukraine, and there are fears that Moscow could intervene in the conflict.
“The market is worried about a potential Russian invasion of Ukraine,” said Chris Gaffney, senior market strategist at EverBank. “That’s been the main concern over the last week or so.”
The crisis has also raised concerns about the stability of Ukraine’s economy. The country is heavily dependent on Russia for energy supplies, and there are fears that Moscow could cut off its supply in retaliation for Kiev’s support of the West.
Investors are also worried about the potential for broader economic sanctions against Russia. The US and the European Union have already imposed sanctions on a number of Russian officials, and there are fears that they could expand those measures if the crisis continues to escalate.
So far, the markets have been relatively resilient in the face of the turmoil in Ukraine. But there is growing concern that the crisis could spiral out of control, potentially causing a global recession.
“The market is starting to price in a potential for a full-blown civil war in Ukraine,” said Gaffney. “That’s really what we’re watching for now.” The turmoil in Ukraine has rattled global markets in recent weeks, and investors are growing increasingly concerned about the potential for further escalation. Russian forces have been massing on the border with Ukraine, and there are fears that Moscow could intervene in the conflict.