US open: Major indices sink after Russia invades Ukraine
Wall Street stocks were firmly in the red at the open on Thursday after Russian soldiers invaded Ukraine overnight and investors ran for the safety of fixed-income assets.
As of 1540 GMT, the Dow Jones Industrial Average was down 2.13% at 32,427.05, while the S&P 500 was 1.56% weaker at 4,159.43 and the Nasdaq Composite came out the gate 1.28% softer at 12,871.13.
The Dow opened 704.71 points lower on Thursday, extending losses recorded in the previous session as investors reacted to Washington's imposing of the first round of sanctions on Moscow after Russian president Vladimir Putin ordered troops into rebel-held areas of eastern Ukraine.
Thursday's early losses came after Russian president Vladimir Putin said he would launch a military action in Ukraine, with explosions already reported across several key Ukrainian cities, including the capital of Kyiv. Putin referred to the invasion as "the demilitarization" of its neighbour and said Moscow's plans did not include the occupation of Ukrainian territories.
NATO has vowed to reinforce its presence on Ukraine's eastern front following Russia's invasion and US president Joe Biden condemned the attack, stating the world would "hold Russia accountable" for its actions.
"Russia alone is responsible for the death and destruction this attack will bring, and the United States and its allies and partners will respond in a united and decisive way," Biden said.
In response, oil prices surged, with West Texas Intermediate futures rising 5.86% higher to around $97.50 per barrel, while Brent jumped 6.90% to $103.52 a barrel, while the yield on the benchmark 10-year Treasury note slipped to 1.86% as market participants turned their attention towards safe-haven bonds.
Bank stocks were also under pressure, with Bank of America shares down over 4% and Bank of New York Mellon shares were 5.14% lower at the opening bell.
In terms of earnings, CBRE beat estimates on a fourth-quarter profit jump, while SeaWorld swung to a big profit beat as revenues more than doubled.
Still to come, Beyond Meat, Dell Technologies and Etsy will publish their latest quarterly results after the close.
On the macro front, first-time jobless claims fell at a faster than expected clip in the week ended 19 February following three consecutive weeks of increases. According to the Labor Department, 232,000 Americans filed initial jobless claims last week, down from the 248,000 reported a week earlier and slightly better than the expected print of 235,000. Continuing claims came in at 1.47m, down from 1.59m in the prior week to a new pandemic-era low, while the four-week moving average decreased by 7,250 to 236,250.
Elsewhere, the US economy expanded at a 7% annual pace between October and December, as a second reading of the nation's gross domestic product put GDP on track to rise 5.7% over the full-year - the fastest calendar-year growth seen since a brutal recession hit the nation almost 40 years ago.
Still on data, the Chicago Fed's national activity index increased to 0.69 in January following a revised 0.07 print a month earlier as all four broad categories of indicators used to construct the index made positive contributions.
Finally, new home sales fell 4.5% to 801,000 in January, according to the Census Bureau, as high home prices, rising mortgage rates, cold weather and a surge in Omicron infections weighed on sentiment amongst buyers.