US STOCKS-Nasdaq plunges over 4%, S&P 500 set to confirm correction

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* The S&P 500 falls more than 10% from its January 3 closing high

* Kohl pushes as Sycamore and Acacia show interest in takeover

* Information technology is the top sector loser in the S&P 500

* Indexes down: Dow 3.15%, S&P 3.9%, Nasdaq 4.8% (add comment, details; update prices)

By Devik Jain and Bansari Mayur Kamdar

Jan 24 (Reuters) – U.S. stock indices plunged on Monday as the S&P 500 poised to confirm a correction, with the prospect of a Russian attack on Ukraine posing as a double whammy for investors already worried about the tightening aggressive monetary policy from the Federal Reserve. .

A correction is confirmed when an index closes 10% or more below its record closing level. The S&P 500 index is now down 11.3% from its January 3 closing high.

All 11 major S&P sectors fell, with seven slipping more than 3% each.

The Russell 2000 Economically Sensitive Small Cap Index fell 2.6%. The index fell 20.9% from its November 8 high, putting it on track to confirm a bear market.

NATO said on Monday it was putting its forces on standby and bolstering Eastern Europe with more ships and fighter jets in response to Russia’s military buildup on Ukraine’s borders.

A widely watched indicator of investor anxiety in US markets – the CBOE Volatility Index – last traded at its highest level since January 2021.

“If it was just Ukraine itself, people would ignore it, but it’s sort of the icing on the cake today,” said Gary Black, managing partner of Future Fund Active ETF. (FFND).

“It’s happening at the same time that people are worried that the Fed is making a policy mistake and (it) just adds to the uncertainty.”

The Fed’s policy meeting ends on Wednesday and the market will be very attentive to the Fed’s concern over soaring inflation and the aggressiveness of the US central bank in trying to contain it.

Fed funds futures traders are fully anticipating a 25 basis point hike in March, in addition to three more rate hikes by the end of the year.

Equities have had a rocky start to 2022, with the Nasdaq index now down 17.5% from its November closing high, prospects for more rapid policy tightening have spurred higher yields of the Treasury which dealt a blow to the growth names of Wall Street.

As of 12:18 p.m. ET, the Dow Jones Industrial Average was down 1,078.86 points, or 3.15%, at 33,186.51, the S&P 500 was down 171.14 points, or 3.89% , at 4,226.80, and the Nasdaq Composite was down 661.36 points, or 4.80. %, at 13,107.56.

All major indices are trading below their 200-day moving average, a key technical level watched by market participants.

Tesla Inc slid 8.3% to lead the decline among mega-cap tech stocks.

“For many tech companies, multiples and valuations are certainly high in many cases and so if you’re not delivering the earnings to justify the valuation, there’s room for continued and additional corrections,” Darren said. Schuringa, CEO of ASYMmetric. ETFs in New York.

Kohl’s Corp jumped 31.6% after Reuters reported that private equity firm Sycamore Partners was preparing to make a bid for the US department store days after a consortium backed by activist investment firm Starboard Value offered a buyout.

Falling issues outnumbered advances by a ratio of 9.08 to 1 on the NYSE and by a ratio of 5.37 to 1 on the Nasdaq.

The S&P index recorded a new 52-week high and 29 new lows, while the Nasdaq recorded three new highs and 1,281 new lows. (Reporting by Devik Jain and Bansari Mayur Kamdar in Bengaluru; Editing by Maju Samuel)

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