Monday, March 07, 2022

DJIA: 32,817.38, down 797.42
S&P 500: 4,201.08, down 127.79
Nasdaq: 12,830.96, down 482.48

S&P 500 sees worst day since October 2020

U.S. stocks finished firmly lower Monday as rising commodity prices stoked concerns surrounding inflation and global economic growth. The Dow shed 797 points, while the S&P 500 fell 3%–its worst session since October 2020. Both benchmarks ended in correction territory (defined as a 10% decline from a recent record). The Nasdaq Composite retreated 3.6%, sinking into bear market territory (defined as a 20% drop from a recent peak) amid weakness in growth-related shares. Overseas, the German DAX confirmed a bear market for the first time since 2020. Treasuries weakened, with the yield on the 10-year note up five basis points (0.05%) to 1.79%, while a measure of 10-year inflationary expectations hit an all-time high.

West Texas Intermediate (WTI) crude added 3.6% to $119.84/barrel after earlier touching $130.50/barrel, a peak not seen since July 2008. Crude prices climbed amid reports that the U.S. and its allies were contemplating a formal ban on Russian oil and natural gas imports, but pared earlier gains as European Union governments were divided on the issue. Wheat soared to a record amid supply constraints, as did various metals. COMEX gold topped $2,000/ounce for the first time since August 2020.

Nine of 11 S&P 500 sectors closed in negative territory, with Consumer Discretionary shares leading the decline. PVH Corp and Ralph Lauren Corp were among the notable laggards following an analyst downgrade due to outsized exposure to Europe. Offering a bright spot for retailers was Bed Bath & Beyond Inc., which jumped 34.2% after activist investor Ryan Cohen reported a nearly 10% stake in the company.

Read more about it here.