Wall Street down due to Russia concerns
NEW YORK — Stocks ended lower on Thursday, continuing a recent streak of weakness as Russia’s surprisingly harsh retaliatory measures in response to Western sanctions raised concerns about global growth.
In addition to Moscow’s ban on imports of many Western foods, following sanctions imposed for Russia’s support of rebels in eastern Ukraine, investors worried that the conflict between Russian and Ukraine is escalating, with the downing of a Ukrainian fighter jet.
The declines briefly dragged the Dow below its 200-day moving average in afternoon trading. The S&P 500 is now nearly 4 percent below the record closing high it set last month
While the full extent of the sanctions are still unknown, escalating tensions in Russia could continue to spur selling in stocks, analysts said.
“Before this point, U.S. investors have always thought of geopolitical concerns as being largely no more than a 24-hour event. Now, the growing concern is that the outlook for global growth is pointing down,” said Andrew Wilkinson, chief market analyst at Interactive Brokers Group in Greenwich, Connecticut.
All but one of the S&P 500’s industry sectors ended down on the day, backtracking from brief gains in the morning. Consumer staples shares the bright spot of trading on Wednesday, slipped 0.8 percent on Thursday, while utilities shares posted the sole sector gains.
Health insurer stocks were poor performers, dipping after Goldman Sachs downgraded Aetna to “neutral” and cut earnings estimates on a number of its peer Aetna shares slid 4.0 percent to $75.22, United Health Group shares lost 2.7 percent to $79.26 and Cigna shares fell 3.0 percent to $88.75.
The Dow Jones industrial average fell 75.07 points, or 0.46 percent.