Jamie Spencer
U.S. markets opened in the red on Tuesday, with the ongoing Russia-Ukraine conflict driving investors to secure traditional safe-haven assets such as gold and U.S. Treasury bonds. The S&P 500 fell by 0.5%, while the Dow Jones Industrial Average dropped 319 points, or 0.7%, and the Nasdaq composite decreased by 0.5%.
Shift to Safe-Haven Assets
With growing geopolitical fears, gold prices climbed 0.5%, recovering some of their recent losses. Treasury bonds also saw increased demand, pushing the 10-year Treasury yield down to 4.37% from 4.41% on Monday, reflecting investor caution.
Nuclear Concerns Escalate in Europe
European markets faced sharper declines, with France’s CAC 40 and Germany’s DAX plunging by 1.8% and 1.7%, respectively. Market sentiment soured after reports that Ukraine fired U.S.-made ATACMS missiles at Russian targets. Adding to concerns, Russian President Vladimir Putin announced a reduction in the threshold for nuclear weapons use. The ongoing war reached the thousand-day mark, with Kyiv reporting escalating Russian personnel losses.
Walmart Rallies, Lowe’s Dips
The cautious market sentiment overshadowed upbeat earnings reports from major U.S. retailers. Walmart shares rose 3.4% after reporting strong profits, increased online and in-store sales, and an influx of higher-income shoppers, leading the company to raise its annual forecast. Conversely, Lowe’s saw its stock dip 3.5% despite positive earnings, indicating Wall Street’s wary outlook.
AI Earnings in Focus
This week, Wall Street’s attention turns to high-profile earnings reports, with Nvidia and Target scheduled for Wednesday and Deere set for Thursday. Nvidia’s stock, which has surged over 185% this year amid AI-driven optimism, faces high investor expectations.
Super Micro Computer Soars on Positive Update
Shares of Super Micro Computer surged by 22% after the company announced a plan to retain its Nasdaq listing and appointed an independent auditor. Following a tumultuous year marked by accounting concerns, the company’s board concluded a three-month investigation, finding “no evidence of fraud or misconduct.”
Steady Asian Markets
In contrast to Europe, Asian markets showed resilience. Major indexes in Shanghai and Hong Kong ended the day higher, gaining 0.7% and 0.4%, respectively, after recovering from early losses.
