S&P 500 drops as tech drags at end of bumpy week By Reuters

S&P 500 drops as tech drags at end of bumpy week By Reuters

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© Reuters. Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., March 7, 2022. REUTERS/Andrew Kelly

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By Lewis Krauskopf, Devik Jain and Sabahatjahan Contractor

(Reuters) – The benchmark fell on Friday as tech and growth shares led a broad decline and investors worried about the conflict in Ukraine while attention turned to the Federal Reserve’s policy meeting next week.

At the end of a volatile week, indexes had opened higher after Russian President Vladimir Putin said there were “certain positive shifts” in talks with Ukraine, without providing any details, but stocks then faded during the session.

“After we saw a bounce in the middle of the week, there is still too much uncertainty out there,” said Matt Maley, chief market strategist at Miller Tabak. “The market has had a tough couple of Mondays so I think the short-term players want to take some chips off the table.”

According to preliminary data, the S&P 500 lost 55.08 points, or 1.29%, to end at 4,204.44 points, while the Nasdaq Composite lost 294.44 points, or 2.19%, to 12,835.53. The Dow Jones Industrial Average fell 239.03 points, or 0.72%, to 32,935.04.

  Declines in shares of megacap growth companies such as Apple Inc (NASDAQ:) and Tesla (NASDAQ:) Inc dragged on the S&P 500.

Meta Platforms shares fell as Russia opened a criminal case against the Facebook (NASDAQ:) parent after the social network changed its hate speech rules to allow users to call for “death to the Russian invaders” in the context of the war with Ukraine.

President Volodymyr Zelenskiy said Ukraine had reached a “strategic turning point” in the conflict with Russia, but Russian forces bombarded cities across the country and appeared to be regrouping for a possible assault on the capital Kyiv.

Regarding developments in the Ukraine crisis, “you just don’t know what you are going to see so there’s no reason to go into the weekend with a risk-on attitude,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

Growth stocks also came under pressure as the hovered near 2%.

Stocks have struggled this year as concerns about the Russia-Ukraine crisis have deepened a sell-off initially fueled by worries over higher bond yields as the Fed is expected to tighten monetary policy this year to fight inflation.

The U.S. central bank is expected to raise rates at its March 15-16 meeting.

A survey showed U.S. consumer sentiment fell more than expected in early March as gasoline prices surged to a record high in the aftermath of Russia’s war against Ukraine.

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