ALL NEWS

Stocks tumble; oil, wheat prices soar after Ukraine attack

Feb 24, 2022, 8:33 AM | Updated: 8:36 am
us stocks ukraine opening...
The New York Stock Exchange is seen in New York, Thursday, Feb. 24, 2022. U.S. markets pointed toward a sharply lower open, following a global plunge and a surge in oil prices Thursday after Russian President Vladimir Putin launched military action in Ukraine, prompting Washington and Europe to vow sanctions on Moscow that may roil the global economy. (AP Photo/Seth Wenig)
(AP Photo/Seth Wenig)

NEW YORK (AP) — Stocks tumbled worldwide on Thursday after Russia’s attack of Ukraine sent fear coursing through markets and upped the pressure on the high inflation already squeezing the global economy.

On Wall Street, the S&P 500 sank 1.6% in early trading to continue its dismal start of the year. The benchmark is index is now down 13.5% from its record set early this year. Stocks in Europe sank even more after officials called Russia’s moves a “brutal act of war,” with the German DAX down nearly 5%.

Related reading: Utah leaders react to Russian invasion of Ukraine

Beyond its human toll, the conflict looks set to send prices spiraling even higher at gasoline pumps and grocery stores around the world. Russia and Ukraine are major producers not only of energy products but also grains and various other commodities. War could upend global supplies, as could sanctions brought by the United States and other allies.

Oil prices on both sides of the Atlantic jumped toward or above $100 per barrel to their highest levels since 2014, up more than 6%. Wholesale prices also shot higher for heating oil, wheat and other commodities. The spot price in Europe for natural gas, for which the continent relies on Russia to supply, jumped as much as 31%.

Increases in energy and food prices could amplify worries about inflation, which in January hit its hottest level in the United States in a couple generations, and what the Federal Reserve will do in turn to rein it in. The Fed looks certain to remove the super-low interest rates that investors love, which also helped catapult financial markets and the economy out of their coronavirus-caused plunge. The only question has been how quickly and how aggressively the Fed will move.

Bond yields sank around the world, a sign that investors were scrambling into anything that may offer safer returns than stocks and other riskier bets. The yield on the 10-year U.S. Treasury fell to 1.89% from 1.97% late Wednesday. Gold also rallied and climbed 2.4%, continuing its strong run on worries about Russia and Ukraine.

On Wall Street, worries about higher interest rates have delivered the heaviest hits on big technology stocks, a turnaround after those companies soared to lead Wall Street out of its coronavirus-caused plummet in 2020.

The Nasdaq composite, which is full of big tech stocks, sank 1.5% and could close more than 20% below its record set on Nov. 19, 2021. If it does, that’s something Wall Street calls a “bear market,” something that hasn’t happened for the Nasdaq since the coronavirus first crashed the global economy.

The Dow Jones Industrial Average fell 647 points, or 2%, to 32,490.

Financial markets are in a “flight to safety and may have to price in slower growth” due to high energy costs, Chris Turner and Francesco Pesole of ING said in a report.

In Brussels, the president of the European Commission said Thursday the 27-nation European Union planned “massive and targeted sanctions” on Russia.

“We will hold President Putin accountable,” Ursula von der Leyen said.

The FTSE 100 in London fell 3.1% after Europe awakened to news of explosions in the Ukrainian capital of Kyiv, the major city of Kharkiv and other areas. The CAC 40 in Paris lost 4%.

Moscow’s stock exchange briefly suspended trading on all its markets on Thursday morning. After trading resumed, the ruble-denominated MOEX stock index tumbled more than 20% and the dollar-denominated RTS index plunged by more than a third.

Some analysts expect the conflict to push investors out of many tech stocks, with the exception of the cybersecurity sector.

“Growing concern that massive cyber warfare could be on the near-term horizon which would certainly catalyze an increase in spending around preventing sophisticated Russian-based cyber attacks,” analysts with Wedbush Securities wrote in a note to clients.

Putin said Russia had to protect civilians in eastern Ukraine, a claim Washington had predicted he would make to justify an invasion.

President Joe Biden denounced the attack as “unprovoked and unjustified” and said Moscow would be held accountable, which many took to mean Washington and its allies would impose additional sanctions. Putin accused them of ignoring Russia’s demand to prevent Ukraine from joining NATO and to offer Moscow security guarantees.

Washington, Britain, Japan and the EU earlier imposed sanctions on Russian banks, officials and business leaders. Additional options include barring Russia from the global system for bank transactions.
___
AP Business Writer Joe McDonald contributed.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

All News

savings system right on the money...
Mark Jones

Economists are worried of a recession in 2023, financial expert weighs in

Many economists are fearing a recession in 2023 despite the U.S. economy ending last year better than expected.
1 day ago
The Utah Education Association is opposed to H. B. 215. The UEA says school choice and a teacher pa...
Devin Oldroyd

School choice bill is “limiting” public schools, UEA president says

Utah Education Association president Renee Pinkney says the controversial school choice bill is "weakening" and "limiting" public schools.
1 day ago
Spanish Fork High School in Spanish Fork is pictured on Friday March 12, 2021. Students at Spanish ...
Mark Jones

Concurrent enrollment provides students with options in Nebo School District

Programs such as concurrent enrollment can give high school students and their parents options.
1 day ago
artificial intelligence banjo...
Curt Gresseth

ChatGPT: Plagiarism super-tool for students or AI brainstorming generator?

Will the future of AI be the interactive chatbot ChatGPT helping cheaters ace exams and tests or a new tool to assist all students in learning?
1 day ago
FrontRunner...
Elizabeth Weiler

UTA board looks at FrontRunner expansion in Utah County

Utah County is the fastest growing county in the state so UTA is considering a number of expansions to their current FrontRunner and bus lines. 
1 day ago
Lehi City officials have closed a portion of westbound 1500 North to repair a large sinkhole. On it...
Simone Seikaly

Large sinkhole shuts down portion of westbound 1500 North in Lehi

Lehi City officials said the sinkhole formed on 1500 North due to a water leak.
1 day ago

Sponsored Articles

Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy. This year the event will be held from January 27-29 at the Utah Bear Lake State Park Marina and Sunrise Resort and Event Center in Garden City, Utah. 
happy friends with sparklers at christmas dinner...
Macey's

15 Easy Christmas Dinner Ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy. Choose from the dishes we’ve highlighted to plan your meal or start brainstorming your own meal plan a couple of weeks before to make sure you have time to shop and prepare.
Spicy Homemade Loaded Taters Tots...
Macey's

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...
Sorenson

The Best Tools for Deaf and Hard-of-Hearing Workplace Success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Team supporters celebrating at a tailgate party...
Macey's

8 Delicious Tailgate Foods That Require Zero Prep Work

In a hurry? These 8 tailgate foods take zero prep work, so you can fuel up and get back to what matters most: getting hyped for your favorite
christmas decorations candles in glass jars with fir on a old wooden table...
Western Nut Company

12 Mason Jar Gift Ideas for the 12 Days of Christmas [with recipes!]

There are so many clever mason jar gift ideas to give something thoughtful to your neighbors or friends. Read our 12 ideas to make your own!
Stocks tumble; oil, wheat prices soar after Ukraine attack