S&P 500 Slides Deeper Into Correction Territory

Index is now at a 14-month low
By Newser Editors and Wire Services
Posted Feb 23, 2022 3:54 PM CST
S&P 500 Sinks to 14-Month Low
A US flag waves outside the New York Stock Exchange,.   (AP Photo/John Minchillo, File)

Wall Street's losses mounted Wednesday as world leaders waited to see if Russian President Vladimir Putin orders troops deeper into Ukraine. The S&P 500 fell 1.8% to a 14-month low, worsening what is now the benchmark index's second correction in two years. Treasury yields inched higher, as did gold prices. The S&P 500 fell 79.26 points to 4,225.50. The Dow Jones Industrial Average fell 464.85 points, or 1.4%, to 33,131.76. The Nasdaq fell 344.03 points, or 2.6%, to 13,037.49. The Russell 2000 index of smaller companies fell 36.08 points, or 1.8%, to 1,944.09. The losses added to Tuesday's slump and the S&P 500's slide into a correction. The index had its last correction in the spring of 2020, as the pandemic upended the global economy.

Technology stocks led the broad losses Wednesday, the AP reports. Microsoft and Apple both slid 2.6% and Cisco Systems fell 3.3%. The sector has an outsized influence on the S&P 500 because of Big Tech companies' high valuations. Retailers and other companies that rely on direct consumer spending also weighed on the market. Amazon fell 3.6% and Starbucks shed 3.7%. US crude oil prices remained volatile, though energy stocks gained ground. Chevron rose 2.4%. Tesla dropped 7%.

Wall Street has been closely watching developments in Ukraine, where Russia has amassed troops for a new potential invasion. The US and Western nations have responded with sanctions. The tensions have made energy prices volatile—and the potential for a war in eastern Europe has only added to the concerns investors had about the global economy. Stocks have been slipping in 2022 as investors gauge how rising inflation will impact economic growth and whether the Federal Reserve's plan to raise interest rates this year will cool inflation. Wall Street is also still reviewing how companies are dealing with supply chain problems and higher costs in their latest round of corporate report cards.

(More stock market stories.)

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