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• Stocks fell as the West increased its sanctions on Russia
• Oil prices kept climbing as Russia raised its nuclear threat level
Monday’s volatile trading session witnessed a slump as benchmark indices struggled to hold earlier gains after the onslaught of sanctions against Russia triggered President Vladimir Putin to raise a nuclear alert level.
The Dow Jones Industrial Average fell 323 points, or 1%, to trade at 33,734. On Friday, the blue-chip average was on track for its best day since late 2020.
The S&P 500 dropped 0.6%, or 28 points, to 4,355. The Nasdaq Composite fell less than 0.1%, or 8 points, to close 13,687.
Also read: US bans citizens from doing business with Russian central bank
The market sentiment rumbled after the U.S., European allies, and Canada agreed to remove key Russian banks from the interbank messaging system, SWIFT, severing the country from much of the global financial system.
Meanwhile, Putin put Russia’s nuclear forces on red alert in response to what he called “aggressive statements” by NATO.
The U.S. introduced a new wave of sanctions against Russia to isolate Moscow from the global economy. The Biden administration has also authorized additional troops to be stationed in Germany as NATO allies look to bolster defenses in Europe.
What worked and what didn’t?
Defense stocks such as Lockheed Martin (NYSE: LMT) and Northrop Grumman rose 6.7% and 7.9%, respectively. Cybersecurity stocks also outperformed, with Crowdstrike jumping 7.4%, limiting losses for Nasdaq.
The 10-year Treasury yield fell 12 basis points on Monday to 1.87%.
The U.S. oil benchmark, WTI, West Texas Intermediate rose 5.5% Monday to $96.66 a barrel.
Oil prices continued to rise, with Brent crude, the global benchmark, breaching the $100-a-barrel mark.
The last trading day of February witnessed a drop of more than 3% in the three major U.S. averages. The Dow was the worst performer, falling 3.5% for its worst month since November.
Also Read: Aiding Ukraine to protect its sovereignty - The West’s role