Nasdaq plunges 3% into bear-market territory after Russia launches attack against Ukraine
- US stocks plunged on Thursday after Russia launched a full-scale attach against Ukraine.
- The Nasdaq plunged nearly 3% and entered bear-market territory, falling 20% from its record high.
- Commodity prices soared with oil topping $100 per barrel for the first time since 2014.
The invasion of Ukraine by Russia happened in the early morning hours of Thursday and led to missiles hitting airports and military bases across the country. As investors de-risk their portfolios and sell stocks, they are also loading up on commodities, which have soared in price.
Oil prices soared more than 7% and topped $100 per barrel for the first time since 2014, while gold prices jumped almost 3% to levels not seen in over a year.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:
- S&P 500: 4,118.02, down 2.54%
- Dow Jones Industrial Average: 32,286.06, down 2.55% (845.70 points)
- Nasdaq Composite: 12,624.25, down 3.18%
The Russian MOEX
With oil prices surging and tech stocks crumbling, Jamie Cox of Harris Financial Group thinks now is an opportune time for investors who own oil stocks to rebalance their portfolio.
"Investors with energy and commodity exposure should consider using this spike in prices to rebalance into heavily beaten down software names, particularly in the area of cybersecurity," Cox told Insider.
The Russia invasion also has implications for the Federal Reserve, according to Cox, who now sees a 25 basis point interest rate hike being cemented in March rather than a 50 basis point rate hike.
Unlike gold, bitcoin was not immune to the sharp drop in risk assets on Thursday. The popular cryptocurrency fell as much as 9% to $34,584 after Russia launched its invasion of Ukraine.
West Texas Intermediate crude oil rose as much as 7.63% to $99.13 per barrel. Brent crude, oil's international benchmark, jumped as much as 7.72 % to $104.32 per barrel.
Gold rose as much as 2.37% to $1,955.60 per ounce. The yield on the 10-year Treasury fell 11 basis points to 1.89%.
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