Investors are bracing for a difficult start for US stocks as investors return to equity markets following the Presidents Day holiday with Russia ordering troops into two breakaway regions of eastern Ukraine in defiance of economic sanction threats from the West.
Futures for the S&P 500, the most closely watched US market, point to 0.3% declines while the Dow Jones Industrial Average is seen falling 0.35% in Tuesday pre-market trading. The tech-laden Nasdaq 100 is looking at declines of more than 0.5% when trading starts at 2.30pm UK time.
Markets ended last week in the red as tensions between Ukraine and Russia escalated and investors continued to mull the Federal Reserve’s upcoming decision on interest rate rises.
A LOSING WEEK
At the close on Friday (18 February 2022), the S&P 500 had lost 0.72% at 4,349, the Dow was 0.68% lower at 34,079, while the Nasdaq declined 1.23% to 13,548.
London-listed US focused investment trusts gave a mixed response in trading on Tuesday (22 February 2022). The BlackRock Sustainable American Income Trust (BRSA) and North American Income Trust (NAIT) posted share price falls of 2% and 1.5% respectively, while others made gains, led by Pershing Square’s (PSH) near-2.5% rally.
The growth-focused Baillie Gifford US Growth Trust (USA) rose 0.7% while the JPMorgan American Investment Trust (JAM) added 0.6%.
