CHINA TOPIX

11/02/2024 03:41:00 pm

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Wall Street Drops Anew In The Midst Of Ukraine Crisis

Wall Street

(Photo : REUTERS / Eric Thayer) Wall Street

After rebounding on Monday, the U.S. stocks fell again after the extremities of the Ukraine crisis.

The fast drop in energy shares on Tuesday benchmarked the lowest level of stocks since May.

Big names in the energy sector were greatly affected. Pioneer Natural Resources Co. and Halliburton Co. tumbled down to 3.4 percent, marking the highest decline among energy companies for 2014. In total, the 10 S&P 500 sectors lost 2.1 percent on Tuesday.

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The markets were relatively weak during the trading session but has experienced an accelerated selling during the afternoon when the reports about Russian troops closing in Ukraine came in.

Mark Luschini, chief investment strategist at Janney Montgomery Scott, said the consensus of the market has always been driven by sentiment.

Lou Shaduk, managing director of equity trading at Stifel Nicolaus & Co., supported Luschini. He said that the "market had been jittery." He said that all the talk from Polish Minister Sikorski about pressuring the Russian forces to invade Ukraine has pushed buyers into the "hiding" mentality.

In terms of volatility, the VIX moved in the opposite direction on Tuesday with a 12 percent jump. Last week, it has a recorded 34 percent increase, the highest record since January.

Michael James, from Wedbush Securities Inc., said the traders did not feel the sustainability of Monday's rebound so the market was placed on "wobbly legs" once again. James said that investors were already unimpressed even before the Ukraine news came out.

Aside from the energy sector, airlines companies also experienced the drop. Delta Air Lines Inc. dropped 2.8 percent while United Continental Holdings Inc. fell 3.4 percent.

Meanwhile, other group sectors experiences a revamp. Luxury handbag company Coach Inc. soared to 4.3 percent, while car rental company Avis Budget Group Inc. climbed to 2.6 percent.

A total of 6.2 billion shares were exchanged on Tuesday, according to BATS Global Markets data. 

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