Stock futures fell slightly in early morning trading Tuesday following the S&P 500’s worst day since October, as investors remained on edge about surging oil prices and slowing economic growth amid Russia’s invasion of Ukraine.
Futures on the Dow Jones Industrial Average dipped 223 points, or 0.68%. S&P 500 futures traded 0.54% lower and Nasdaq 100 futures fell 0.64%.
The overnight action came after a steep sell-off on Wall Street where the S&P 500 dropped nearly 3% for its biggest one-day decline in more than a year. The blue-chip Dow tumbled almost 800 points for its fifth negative session in six, while the tech-heavy Nasdaq Composite slid 3.6%, falling into bear market territory, down 20% from its record high from November.
“Sentiment is palpably negative,” Adam Crisafulli, founder of Vital Knowledge, said in a note. “Any hope/optimism that may have exited seems to have completely evaporated from the market and there’s NO interest to buy dips.”
Oil prices spiked to start the week with U.S. crude hitting a 13-year high of $130. WTI futures eventually settled Monday’s session up 3.2% at $119.40, the highest settle since September 2008. The international benchmark, Brent crude, reached a high of $139.13 at one point overnight before settling at $123.21 per barrel, its highest since July 2008.
Investors continued to monitor developments of escalated geopolitical tensions. Ukraine said Moscow is seeking to manipulate its cease-fire arrangement by only allowing Ukrainian civilians to evacuate to Russia and Belarus.
Secretary of State Antony Blinken said Sunday that the U.S. and its allies are eyeing a ban on Russian oil and natural gas imports for its actions against Ukraine.
“There seems to be no evidence of improvements in Ukraine and the rhetoric out of DC continues to get more hawkish,” said Cliff Hodge, chief investment officer at Cornerstone Wealth. “While it’s impossible to know where the ultimate bottom may be, from a risk-reward standpoint, the market looks very reasonable.”
Dick’s Sporting Goods is set to report quarterly earnings Tuesday before the bell.