PARIS, Feb 22 (Reuters) – The New York Stock Exchange opened lower on Tuesday but the session could be volatile as investors struggle to assess the impact of Moscow’s recognition of the independence of the two pro-Russian breakaway regions in Ukraine and the scope of possible Western sanctions.
In early trading, the Dow Jones index lost 306.9 points, or 0.9%, to 33,772.28 points and the broader Standard & Poor’s 500 fell 0.65% to 4,320.49 points.
The Nasdaq Composite lost 0.77%, or 104.52 points, to 13,443.54.
Russia is expected to be subject to new sanctions from Western countries on Tuesday after President Vladimir Putin recognized the independence of two separatist regions in eastern Ukraine the day before and announced the deployment of soldiers there. peacekeeping,” heightening fears of a major war in Europe.
Prior to the opening of Wall Street, futures on major New York indices were down more than 1%, but as the day progressed their losses tapered off.
“Volatility is the only thing that seems certain in the markets right now,” said Craig Erlam, analyst at Oanda.
Its CBOE index, also known as the “fear index”, advanced 7% to 29.7 points well above its long-term average set at 20 points.
In values, the tourism sector is suffering, notably with a 1.4% drop in the air transport index. American Airlines and Delta Air Lines lost 1.8% and 2% respectively, while cruise lines Norwegian Cruise Line, Royal Caribbean Cruises and Carnival fell 1.8% to 2.7%. The travel site Tripadvisor (-1.7%) and the casino operator Wynn Resorts (-2.5%) are also in the red.
The threat of US sanctions against Moscow affects semiconductor manufacturers Nvidia (-1.8%), Intel (-1%) or Qualcomm (-0.9%) because their exports to Russia could be blocked.
Oil and gas groups such as Exxon Mobil (+1.5%), Chevron (+1.1%), Marathon Oil (+4%) or Devon Energy (+1.8%) are on the other hand benefiting from the surge crude oil prices, with Brent close to $100 a barrel in reaction to the latest developments in the Ukrainian crisis.
In the quarterly publications, the results of the DIY store giant Home Depot (-4.7%) and the department store chain MACY’S (+6%) are received to varying degrees.