NEW YORK: US equities suffered in yesterday's trading despite hopes for progress in peace talks between Ukraine and Russia as well as a drop in oil prices fuelled by new Covid-19 lockdowns in China.
Europe shrugged off earlier losses in Asia after Moscow said it made headway yesterday in peace talks with Kyiv ahead of the latest round of negotiations.
But Wall Street was generally gloomy, with indices starting positively before slumping by the end of trading.
The Dow Jones Industrial Average ended flat, a mere 1.05 points higher to 32,945.24 with financial and healthcare shares giving the index some support. The S&P 500 lost 31.2 points, or 0.74%, to 4,173.11 and the Nasdaq Composite dropped 262.59 points, or 2.04%, to 12,581.22.
Declining issues outnumbered advancing ones on the NYSE by a 3.05-to-1 ratio; on Nasdaq, a 2.97-to-1 ratio favoured decliners.
Apple Inc shares fell 2.7% and weighed the most on the S&P 500 and Nasdaq after its supplier Hon Hai Precision Industry Co Ltd, known as Foxconn, suspended operations in China's Shenzhen amid rising Covid-19 cases.
The technology sector and consumer discretionary were the biggest drags on the S&P 500.
Investors are jittery over looming Federal Reserve rate increases, which are expected at the conclusion of the central bank's two-day policy meeting tomorrow, while the new pandemic shutdowns in China are also of concern because they could prolong the supply chain snarls that have pushed prices higher.
The US central bank is having to tread a fine line between reining in runaway inflation while also supporting the world's biggest economy in the face of the war in Ukraine, which many fear could lead to another recession.
Meanwhile the prospect of easing supply tensions and growing demand fears sent oil prices sliding, though sentiment was more positive in Europe.
Frankfurt shares ended the day 2.2% higher, and Paris added 1.8% while London gained 0.6%.
In Asia, investors worry that China's spreading coronavirus lockdowns could throttle the massive economy's demand for crude.
Stock prices in Hong Kong, in particular, took a pounding as an announced lockdown in Shenzhen fuelled a tech-sector rout. – AFP, Reuters
