U.S. stock futures slipped Monday, on worries that a possible Russian attack on Ukraine would further exacerbate supply issues with inflation at a 40-year high.
Futures on the Dow Jones Industrial Average
declined 281 points, or 0.8%, to 34346
Futures on the S&P 500
fell 0.9% or 41 points, to 4369
Futures on the Nasdaq 100
dropped 1.1%, or 153 points, to 14087
On Friday, the Dow Jones Industrial Average
fell 504 points, or 1.43%, to 34738, the S&P 500
declined 85 points, or 1.9%, to 4419, and the Nasdaq Composite
dropped 394 points, or 2.78%, to 13791.
Heading into Monday’s trade, the S&P 500 has dropped 7% this year.
What’s driving markets
Tensions remained high on Monday with Russian forces training on Ukraine’s border in Belarus as well as its ships stationed on the Black Sea. According to the Associated Press, Russia has massed 130,000 troops near Ukraine.
German Chancellor Olaf Scholz was visiting Ukraine and Russia on Monday with fears that time is running out to prevent a war. Over the weekend, U.S. President Joe Biden and Russian President Vladimir Putin held talks, with no tangible progress. Ukraine has requested a meeting with Russia.
Investors fled to the safety of government bonds. The yield on the 10-year Treasury
fell to 1.91%.
“Risk is firmly off this morning after fears of an imminent Russian invasion of Ukraine built further over the weekend,” said Ian Williams, a strategist at U.K. broker Peel Hunt.
St. Louis Fed President James Bullard, who spooked financial markets with his comments about supporting a half-point rate hike in the wake of data showing inflation running 7.5% year-over-year, is due to be interviewed by CNBC. Other Fed officials have since said they have yet to be convinced for the need of a half-point rate hike.