ALBAWABA – A number of factors weighed on the United States (US) stock markets, such as the recent turmoil in Russia, interest rate hikes, and market data, driving US stocks down Monday.
Growth stocks were among the biggest anchors dragging main US stocks indexes, with Meta, Alphabet, and Tesla Inc. stocks all falling sharply, Reuters reported.
Last week, US stocks fluctuated after a recent climb, as the Nasdaq index broke its eight-week winning streak after Federal Reserve (Fed) announced further possible rate hikes before the end of the year.
"It doesn't feel like the all clear has sounded yet," Carol Schleif, chief investment officer at BMO family office in Minneapolis, told Reuters, in reference to Russia.
"Nobody knows what the ultimate power structure in Russia's going to look like," She said.
The rebellion by Russian mercenaries raised questions in Western media about Russian President Vladimir Putin's future.
The US State Department had reaffirmed that the situation in Russia remains fluid, according to Reuters.
The Dow Jones Industrial Average fell 12.72 points, or 0.04 percent, to 33,714.71 and the S&P 500 lost 19.51 points, losing 0.45 percent, and dropped 4,328.82. Meanwhile, the Nasdaq Composite dropped 156.74 points, or 1.16 percent, to 13,335.78.
Leading the benchmark's industry index gainers was the energy sector index, which rallied 2.2 percent as oil prices rose over the past two days.
A slew of economic data, including a key inflation gauge, durable goods and a University of Michigan consumer sentiment index, is expected this week.
The data will highlight the status of the US economy, in addition to a speech from Fed Chair Jerome Powell, which could throw light on the Fed's rate hike plans.
Overview of US stocks
Among single stocks, Pfizer’s fell 3.7 percent after the company said it was discontinuing the development of an experimental obesity and diabetes drug.
Alphabet stocks fell 3.3 percent after UBS downgraded the stock to "neutral," while Tesla’s sank 6 percent after Goldman Sachs cut the electric car maker's rating to "neutral."
Lucid Group stocks rose 1.5 percent after entering into an agreement with UK's Aston Martin, giving the electric vehicle maker a 3.7 percent stake in the company.
PacWest stocks climbed 4 percent after private-equity firm Ares Management said it had acquired a $3.5 billion specialty finance loan portfolio from the lender. Whereas Carnival slumped 7.6 percent after the cruise operator forecast third-quarter earnings below Wall Street expectations.
The S&P 500 posted 18 new 52-week highs and two new lows; the Nasdaq Composite recorded 53 new highs and 154 new lows.
