US stocks fell, closing the first quarter, Thursday, with their biggest quarterly decline in two years, as concerns persisted about the continuing conflict in Ukraine and its impact on price inflation.
Once optimism about a possible peace deal between Ukraine and Russia helped lift stocks this week, hopes quickly evaporated after Russian President Vladimir Putin threatened on Thursday to halt contracts that supply Europe with a third of gas unless they are paid in rubles as Ukraine prepares. For more attacks.
Stock prices are sensitive to any signs of progress toward a peace deal between Russia and Ukraine. Already high inflation in the United States has intensified as the prices of commodities such as oil and metals have risen since the war began.
As prices rise, the Federal Reserve is increasingly likely to become more aggressive in raising interest rates to combat inflation, which could dampen economic growth.
The Dow Jones Industrial Average fell 550.46 points, or 1.56 percent, to 34678.35 points, the Standard & Poor’s 500 index lost 72.04 points, or 1.57 percent, to 4,530.41 points, and the Nasdaq Composite Index also fell 221.76 points, or 1.54 percent, to 14,220.52 points.
In terms of quarterly performance, Standard & Poor’s fell 4.9 percent in its worst quarterly performance since 2020, Dow Jones lost 4.6 percent, and Nasdaq fell 9.1 percent.
(Archyde.com)