All three US stock markets pushed lower on the first day of March as Russia ramped up its attacks on Ukraine’s biggest cities, with the Dow Jones the hardest hit, falling 1.8%.
The primary driver was a sell-off in financial stocks and banks, with American Express (NYSE: AXP) down 8% and JP Morgan (NYSE: JPM) down 3% as bond yields continued to fall. These companies traditionally benefit from higher interest rates, but with the market now predicting the Fed will hold off on rate hikes, profit growth may be challenged.
The Nasdaq outperformed, falling 1.6%, but shares in Zoom (NASDAQ: ZM) continued their retreat, down 3%, after the company reported moe than 20% growth in sales but flagged a significant slowdown in profits as work-from-home orders end.fi–
The S&P 500 lost 1.6%, with Target (NYSE: TGT) a key contributor as retail sales continue to surge and the company invested heavily in its supply chain; Target shares gained nearly 10%. Same-store sales is smashing Australian businesses, up 8%, despite the mature nature of the business, with 95% of sales fulfilled by stores and not warehouses.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is tipped to follow US stock markets lower at the open this morning. For a round-up of the latest news, check out my ASX 200 morning report.
