Stock Futures Slide Lower Over More Geopolitical Uncertainties

Russian and Ukraine officials are meeting to discuss a potential end to the conflict

Deputy Editor
Feb 28, 2022 at 9:10 AM
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Stocks futures have resumed their slide today, falling from Friday's impressive bounce, with Dow Jones Industrial Average (DJI) futures 460 points lower, while futures on the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) are eyeing notable drops of their own. Wall Street is keeping an eye on any signs that the conflict between Russia and Ukraine could be cooling (or worsening), as Ukraine officials approach the border for talks with Russian leaders.

News that the U.S. has joined European and Canadian allies in barring several large Russian banks from using the interbank messaging system SWIFT is putting pressure on bank stocks, adding to the sanctions placed on the country's financial institutions by President Joe Biden last week. In response to a nearly 16% depreciation in the ruble against the U.S. dollar, the Central Bank of Russia hiked its key interest rate to 20% from 9.5%. 

Continue reading for more on today's market, including:  

  • Is now the time to buy the dip in Adobe stock?
  • One struggling semiconductor stock that could bounce soon.
  • Plus, BP sells 20% of Rosneft stake; ZEN dissolved Momentive Global deal; and HTA eyes a merger. 

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5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 1.76 million call contracts traded on Friday, and 1.01 million put contracts. The single-session equity put/call ratio fell to 0.57, and the 21-day moving average stay at 0.57.
  2. The shares of BP plc (NYSE:BP) are down 8.1% ahead of the bell following news that the oil company would sell 19.75% of its stake in Russia's state-controlled Rosneft. Plus, the company's CEO Bernard Looney and former executive Bob Dudley are resigning from Rosneft's board immediately. The stock has managed a nearly 16% year-to-date rise, coming into today, despite this year's volatility. 
  3. Zendesk Inc (NYSE:ZEN) has decided to dissolve its all-stock deal with SurveyMonkey owner Momentive Global (MNTV) after Zendesk's shareholders rejected the transaction last Friday. ZEN is trading 0.4% higher ahead of the bell. The security has added almost 11% this year, though the 200-day moving average has once again emerged as a ceiling on the charts. 
  4. On the other hand, real estate investment trust (REIT) Healthcare Trust of America  Inc (NYSE:HTA) just announced it's merging with Healthcare Reality (HR) in a deal with $35.08 per share. HTA is off 5% in premarket trading, adding to its 7% year-to-date deficit. 
  5. The final day of the month will bring trade in goods data and the Chicago PMI.

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Trade Relationship Between China and Russia Could Strengthen

Asian markets settled mostly higher today, with the exception of Hong Kong's Hang Seng, which finished with a 0.2% loss. Japan's Nikkei tacked on 02% and China's Shanghai Composite added 0.3%, while the South Korean Kospi rose 0.8%. As investors monitor Western sanctions on Russia, Yeap Jun Rong, a market strategist at IG in Singapore, speculated "As ties between Russia and Europe worsens, it brings into questions whether Russia's trade relationship with China will strengthen."

In Europe, bourses are lower midday, though many defense-related stocks are rallying after Germany's decision to double its defense spending. London's FTSE 100 is off 1.1% at last glance, while the French CAC 40 and German DAX are down 2.5% and 1.8%, respectively. 

 




 
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