Markets fell further on Thursday as senior federal authorities warned that tensions between Russia and Ukraine had reached a “critical point,” with an invasion possibly “imminent,” prompting fearful investors to sell equities and seek safe-haven assets.
Stocks suffered their worst day of the year so far in 2022, as further negative news from the Russia-Ukraine border weighed on the Dow Jones Industrial Average, which sank 1.8 percent, or more than 600 points, while the S&P 500 fell 2.1 percent and the tech-heavy Nasdaq Composite fell 2.9 percent.
On Thursday morning, the United States’ Ambassador to the United Nations warned that the situation had reached a “critical juncture” as Ukraine accused pro-Russian rebels of attacking a hamlet near the border.
Meanwhile, President Joe Biden warned reporters that “every sign” leads to Russia invading Ukraine in the “coming several days,” with evidence pointing to further military buildup along the border rather than deescalation.
The subsequent selloff was extensive, affecting virtually all S&P 500 sectors, with financials and technology stocks leading the drop and investors flocking to safe-haven assets such as gold.
A spate of business earnings releases were also analysed by investors: Palantir shares plunged about 15% on disappointing quarterly results, while Nvidia shares slid 8% following lower-than-expected margin outlook.
Walmart’s stock increased over 4% after exceeding forecasts, Cisco’s stock increased 3% after boosting its financial projections, and DoorDash’s stock increased 9 percent after recording record order figures.