Wall Street Opens Lower as War Fears Return

Wall Street

S&P 500 is trading down 2.12% at 4380.26

U.S. stock markets opened lower on Thursday as fears of war in Ukraine returned to center stage, amid reports of tank fire and the expulsion of a senior U.S. diplomat by Russia.

Ukraine’s Foreign Minister Dmytro Kuleba was quoted by newswires as saying that two Ukrainian servicemen had been injured by shots fired from breakaway republics in eastern Ukraine, which were set up by Russia in 2014 after its first invasion of the country. Kuleba’s statement followed one from Moscow saying it had expelled the U.S.’s deputy ambassador in Russia, a move labeled by U.S. officials as a “deliberate escalation.”  U.S. President Joe Biden said the risk of a full-blown invasion was “very high.”

The Russian government also issued a rejection of the U.S.’s latest proposals on security cooperation, saying they had failed to meet a central demand regarding Russia’s security guarantees. The Kremlin has been pushing for a commitment that Ukraine will never join the U.S.-led NATO alliance.

By 9:50 AM ET (1450 GMT), the Dow Jones Industrial Average was down 336 points, or 1.0%, at 34,598 points. The S&P 500 was down 1.1% and the Nasdaq Composite was down 1.2%.

Nvidia stock, one of the star performers of recent years, fell 6.9% after the chipmaker said that the surge in demand for its chips wouldn’t result in higher operating margins in the current quarter. Some analysts expressed concern that its exposure to crypto miners, who hoard computing power, could be a two-edged sword if the boom in cryptocurrencies cools off. Nvidia stock is now down some 24% from its December peak.

On technical fronts S&P 500 RSI stood at 35.65 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : S&P 500 – SELL: 4392.29, TARGET: 4365.12, STOP LOSS : 4408.68

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