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US equites drop as investors shun risk assets

Frenzied selling was seen across the US stock market on Tuesday, March 8, 2022. The current geopolitical situation is having an impact on the entire global economy as the sanctions imposed on Russia are already cutting both ways. These measures, taken by the West, have pushed up energy prices to record highs. Additional negativity comes from the Federal Reserve’s policy stance. The regulator will be reversing its monetary policy path shortly, with the rate liftoff right around the corner. Such key fundamental factors can be expected to add further momentum to the downtrend in the US stock market.


NASDAQ Composite: 12,795 (-0.28%)

S&P 500: 4,170 (-0.72%)

DJIA: 33,632 (-0.56%)

SPX 500 CFDs are consolidating near 4,200.  Technically, this picture tends to confirm the overall bearish trend. Selling is likely to hold sway and we can expect the key support level, located at 4100, to be tested (see below the CFD chart on the SPX 500 from MT4).

Market news

US President Joe Biden on Tuesday signed an executive order banning the import of oil, petroleum products, as well as LNG and coal from Russia. The order also bans US investment in Russia's energy sector and the financing of foreign companies that invest in the sector.

The UK government has joined the sanctions against the Russian energy sector, voicing its intention to halt imports of Russian oil by the end of this year.

Deputy Prime Minister of Russia Alexander Novak said that the refusal to take Russian oil could push prices up to $300/bbl.

Corporate news

Alphabet Inc. rose 0.6% in Tuesday trading. The company announced the purchase of Mandiant Inc., a provider of cybersecurity solutions, for $5.4 bln. As a result, Mandiant saw 2% shaved off its market cap.

McDonald's fell 0.7%. The US chain of fast food restaurants is temporarily halting operations in Russia.


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