Stocks slumped on Thursday after Russia invaded Ukraine, sending the Nasdaq index into what’s known as a “bear market.”
The Dow Jones Industrial Average …
Stocks slumped on Thursday after Russia invaded Ukraine, sending the Nasdaq index into what’s known as a “bear market.” The Dow Jones Industrial Average dropped more than 700 points, or 2.2%, while the S&P 500 fell 1.6% as of mid-morning trading. The Nasdaq, which is heavily made up of technology companies, fell 1%, after earlier entering a bear market. That’s when an index drops by 20% or more from its recent record high, though the Nasdaq cut some its earlier losses, leaving it in and out of the technical definition of bear mearket. The invasion also sent crude prices above $100 a barrel for the first time since 2014. That is likely to reinforce inflation fears at a time when consumer prices were already surging at their fastest annual pace in 40 years. Here are four things to know as global markets reel. It’s been a tough year for stocks. Stocks had already been falling though most of the year because of fears about inflation and the prospect of higher interest rates. The geopolitical tensions in recent days had already made things worse as investors braced for a Russian invasion of Ukraine. Both the Dow and the S&P entered a correction territory this week, or when stocks fall more than 10% from their recent record highs. Though predicting stock moves is impossible, analysts warn sentiment will be cautious for a while. Global stock markets also dropped after the invasion, with Russian stocks down sharply while the ruble, the country’s currency, hit a record low.
