Wall Street falls hard

Stocks have extended their falls, with the Dow plummeting more than 200 points.

Worries surrounding the friction in Crimea have flared up again, triggering a steep drop in stock index levels on Wall Street. There have been reports that the Russia military is conducting drills close to Ukraine’s border and this has led to sentiment deteriorating further from an already shaky condition.

With twenty minutes to the close the Dow Jones was down 1.44% or 235 points at 16,104, while the S&P 500 dropped 1.14% to 1847.0.

If the market is rattled now, things may get worse before they get better, with US Secretary of State John Kerry warning that Western governments would take ‘very serious’ steps if Russia annexes Crimea. A referendum on that issue is due this Sunday. We saw investors taking steps to mitigate some of their exposure heading into last weekend and with tensions running a little higher right now I wouldn’t be surprised if caution takes the upper hand tomorrow as well.

We saw import prices for February jumping in today’s earlier report, and that will likely be reflected to some degree in tomorrow’s Producer Price Index. A 0.2% rise is the consensus; my personal view is that it will come in a little higher. We also have the preliminary March reading of the University of Michigan’s index of consumer sentiment tomorrow, with 81.8 expected. This is normally an important indicator, but I wouldn’t be surprised if it is overshadowed by geo-political concerns tomorrow.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.