S&P sinks deeper into correction territory: Stocks turn negative and oil prices rise

The benchmark S&P 500 index is falling further after slumping into ‘correction’ territory, or 10 percent below its previous high. 

After opening higher on Wednesday for the first time in five trading sessions, the major stock indexes all gave up early gains and swung into negative territory.  

At 10.47am, the Dow was down 90 points, or 0.27 percent, the S&P sank 0.31 percent and the Nasdaq lost 0.54 percent. 

Investors continued to take cues from developments in Ukraine, where Russia has started evacuating its embassy in Kyiv, as fears mount that Russian President Vladimir Putin might be about to order a full-scale invasion.  

The benchmark S&P 500 index is falling further after slumping into ‘correction’ territory, or 10 percent below its previous high

U.S. crude oil prices rose 1.8 percent and lifted energy stocks

Investors continued to take cues from developments in Ukraine, where Russia has started evacuating its embassy in Kyiv. Pictured: A trader works at the NYSE last week 

With fears an invasion could disrupt world energy markets, crude oil continued to push toward $100 a barrel after hitting a seven-year high on Monday. 

U.S. crude oil prices rose 1.8 percent and lifted energy stocks. Chevron gained 2.2 percent.

Shares of home improvement giant Lowe’s rose as much as 4 percent after beating earnings forecasts and announcing sales growth of 5 percent.

Some technology stocks gained ground and helped temper losses elsewhere in the market. Adobe rose 1.7 percent. 

The sector is full of companies with pricey stock values that tend to hold more weight in swaying the market up or down. 

Security software maker Palo Alto Networks rose 4.2 percent after raising its profit forecast on strong demand for cybersecurity.

TJX, the parent of T.J. Maxx and Marshalls, fell 7.5 percent after reporting disappointing fourth-quarter financial results.

Shares of home improvement giant Lowe’s rose as much as 4 percent after beating earnings forecasts and announcing sales growth of 5 percent

Bond yields gained ground. The yield on the 10-year Treasury rose to 1.97 percent from 1.95 percent late Tuesday.

A slump for major indexes on Tuesday sent the benchmark S&P 500 into a ‘correction’, or a loss of 10 percent from its recent peak. 

The last correction for the index was in the spring of 2020, as the pandemic upended the global economy. 

That correction worsened into a bear market – a decline of 20 percent or more – as the S&P 500 sank nearly 34 percent in about a month. 

Wall Street has been closely watching developments in Ukraine, where Russia has amassed troops for a potential invasion. 

Russia has started evacuating its embassy in Kyiv. It has already sent soldiers into eastern regions of Ukraine after recognizing the independence of some rebel-held areas.

Russian armored vehicles at the railway station in Rostov region, Russia on Wednesday

Germany halted the Nord Stream 2 gas pipeline project designed to bring Russian gas to the country in response to Russian troops moving into rebel-held areas of Ukraine 

The U.S. and western nations have responded with sanctions and Germany withdrew a document needed for certification of the Nord Stream 2 gas pipeline from Russia. 

The tensions have made energy prices volatile as any conflict between Russia and Ukraine disrupt supplies.

The potential for a war in eastern Europe has only added to the concerns investors had about the global economy. 

Stocks have been slipping in 2022 as investors gauge how rising inflation will impact economic growth and whether the Federal Reserve’s plan to raise interest rates this year will cool inflation.

Wall Street is also still reviewing how companies are dealing with supply chain problems and higher costs in their latest round of corporate report cards.