Stock futures down ahead of first trading session of March as Russia bears down on Ukraine capital
U.S. stock futures started March negative, falling Tuesday as investors continue to monitor the fighting between Russia and Ukraine.
Dow futures dropped 232 points or 0.68%. S&P 500 futures were off 0.78% and Nasdaq 100 futures slipped 0.25%.
The decline came as satellite cameras captured a convoy of Russian military vehicles apparently on its way to Kyiv, the Ukrainian capital.
Ukrainian and Russian officials wrapped up a critical round of talks Monday.
As futures fell, energy prices rose, with West Texas Intermediate oil up 3.3% to $98.87 a barrel and Brent crude climbing 3.8% to $101.68. Natural gas was up 2.2% as well. Treasury yields were mostly lower, with the benchmark 10-year note most recently at 1.74%.
In a volatile session on Monday, the Dow Jones Industrial Average lost nearly 170 points. The S&P 500 dropped 0.24% and the Nasdaq Composite rose 0.4%.
Meanwhile, the central bank of Russia more than doubled its key interest rate on Monday, as the ruble plummeted after heavy sanctions were imposed on Moscow by the West.
JPMorgan’s Marko Kolanovic said Monday the worst of the Russia-Ukraine sell-off might be over.
“The Russia/Ukraine crisis will continue to produce market volatility, but the direct impact on corporate earnings should be small. Indirect risks are more substantial, given effects of higher commodity prices on inflation, growth, and consumers,” Kolanovic said in a Monday afternoon note. “However, one silver lining is that the crisis forced a dovish reassessment of the Fed by the market.”
Investors are also gearing up to hear from Federal Reserve Chair Jerome Powell in his semiannual hearing at House Committee on Financial Services, which begins on Wednesday.
Monday also marked the final trading day of February. The Dow lost 3.5% for the month. The S&P 500 and Nasdaq fell 3.1% and 3.4%, respectively.
Looking to Tuesday, big box retailer Target reports earnings before the bell and cloud giant Salesforce reports after the close.
On the economic front, February’s Markit Manufacturing PMI will be released at 9:45 a.m. on Tuesday. ISM manufacturing PMI for February will be out at 10 a.m.
