Wall Street ended lower on Thursday after growth-focused stocks including Tesla and Amazon weighed on the Nasdaq tech index, while the Ukraine crisis kept investors on edge.
Tesla dropped 4.6% and Amazon lost 2.7%, both contributing more than any other stock to the Nasdaq’s sharp decline.
The S&P 500 growth index fell 1.1%, while the value index rose 0.1%.
Reflecting the defensive mood on Wall Street, the S&P 500 utilities index rose 1.7% and real estate gained 1.1%.
“The market is totally caught up in this geopolitical turmoil,” said Ross Mayfield, investment strategist at Baird in Louisville, Kentucky. “Volatility is likely to remain in the short term, and maybe even in the medium term, because I just don’t see an acceptable way out in the coming weeks for Ukraine or Putin.”
In addition, rising prices of oil and other commodities have fueled fears that the recent rise in inflation could combine with stagnant economic growth, which would make interest rates more difficult for the Federal Reserve and other major central banks to manage.
The percentage of fund managers expecting so-called stagflation in the next 12 months is at 30%, up from 22% last month, a Bank of America Global Research survey showed.
The S&P 500 index closed down 0.53% at 4,363.49 points. The Dow Jones fell 0.29% to 33,794.66 points. The Nasdaq Composite technology index fell 1.56% to 13,537.94 points.
Source: CNN Brasil
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