Global Markets Turn Lower After U.S.-Russia Tensions Escalated

Barry Adams
19 Nov, 2024
New York City

Stock market indexes looked down, gold jumped, and bond yields edged lower amid rising tensions between Russia and the U.S. 

The S&P 500 index declined 0.8%, and the Nasdaq Composite dropped 1.1% after Russia's president, Vladimir Putin, lowered his nation's bar for the use of atomic weapons.

Putin said Russia would consider using atomic weapons if his nation or its allies were met with the "use of conventional weapons that created a critical threat to their sovereignty and/or their territorial integrity.”

Russia's news agency TASS also noted that the nuclear doctrine was last revised in June 2020. 

"Moscow also reserves the right to consider a nuclear response to a conventional weapons attack threatening its sovereignty, a large-scale launch of enemy aircraft, missiles, and drones targeting Russian territory, their crossing of the Russian border, and an attack on its ally Belarus," noted the news agency. 

Investors sought protection in bonds amid rising geopolitical tensions and looming trade wars among three large trading blocs: the U.S., the European Union, and China. 

Investors also awaited the release of surveys of manufacturing and service sectors and housing sector activities data later in the week. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.4% to $5,898.50, the Nasdaq Composite fell 0.3% to 18,741.05, and the Russell 2000 index declined 0.2% to 2,291.41. 

The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.38%, and 30-year Treasury bonds decreased to 4.56%.

WTI crude oil decreased $0.35 to $68.30 a barrel, and natural gas prices edged down 3 cents to $2.94 a thermal unit.

Gold decreased by $24.06 to $2,636.42 an ounce, and silver increased by $0.19 to $31.34.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.40.

 

U.S. Stock Movers 

Walmart increased 3.7% to $87.16 after the retailer reported better-than-expected quarterly results and revised its annual outlook. 

The retailer boosted its annual sales estimate to a new range between 4.8% and 5.1%, from the previous estimate between 3.75% and 4.75%. 

Consolidated revenue in the third quarter increased 5.5% to $169.6 billion, net income advanced to $4.6 billion from $453 million, and net income rose to 57 cents from 6 cents a year ago. 

The retailer said it repurchased 46 million shares for $3 billion in the year so far, as part of its $20 billion stock buyback plan. 

The company said sales at its U.S. locations increased 5.5% to $114.9 billion, reflecting broad strength as more customers look for products beyond its grocery aisles. 

E-commerce sales in the U.S. rose 22%, led by store-fulfilled pickup & delivery, advertising revenue, and marketplace activities. 

Super Micro Computer soared 27% to $27.48 after the company appointed BDO as its new independent auditor following the resignation of its previous auditor, Ernst & Young. 

The company also said it plans to file its annual report for the year ending on June 30 and its latest quarterly report ending on September 30.