Stocks expected to start the week lower as traders monitor Russia-Ukraine updates

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Stock futures fall

U.S. stock futures fell in pre-market hours on Monday, implying stocks would open lower, after the Dow, S&P 500, and Nasdaq posted their strongest week since November 2020.

As of 5:55 a.m. ET, futures tied to the blue-chip Dow were indicated 90 points, or 0.26% to 34,543.

S&P 500 futures shed 5.25 points, or 0.12% to 4,448.25 while the tech-heavy Nasdaq 100 futures dropped 45.5 points, or 0.32% to 14,368.

On Friday, the Dow rose 0.8% as stock traders welcomed the Federal Reserve’s first interest rate increase since 2018 and its plans for more hikes.

The S&P 500 rose 1.17% while the Nasdaq Composite closed 2.05% higher.

Crude futures surge as EU nations consider a ban on Russia oil

Meanwhile, crude futures were edging higher as Russia continued its attack on Ukraine with no diplomatic progress in sight.

Defense and foreign ministers from the European Union are scheduled to hold a meeting in Brussels to discuss slapping Russia with additional sanctions for its military action in Ukraine.

Some EU members like Poland are reportedly pushing for an embargo on imports of Russian oil and gas. But Germany, which is heavily reliant on Russian gas, has opposed an outright ban on Russian energy imports.

White House Press Secretary Jen Psaki said last week that President Joe Biden will travel to Brussels on Thursday to attend an EU summit on Ukraine that will debate discuss the coordinated sanctions on Russia and humanitarian efforts for Ukrainian refuges.

As of 5:55 a.m. ET, U.S. West Texas Intermediate (WTI) crude futures were up $3.77, or 3.66% to $106.86 a barrel. Global Brent crude futures jumped $3.54, or 3.28% to $111.47 barrel.

Boeing stock slides after a 737 jet crashes in China

Boeing (NYSE: BA) shares tumbled early Monday after a Chinese airliner carrying 123 passengers and nine crew members crashed in the southern province of Guangxi on Monday, according to the country’s state media.

The plane, a Boeing 737-800, operated by China Eastern Airlines, was flying from the city of Kunming to Guangzhou before crashing into a wooded hillside from which huge flames and thick smoke could be seen rising.

China’s Civil Aviation Administration of China (CAAC) said it has activated the emergency mechanism and sent a working group to the scene.

China Eastern operates several models of the 737 plane, including the 737-800 and the 737 Max. The 737 Max model has not resumed flying in China after it was grounded following fatal crashes in Indonesia in 2018 and Ethiopia in 2019.

Boeing stock was marked $15.78, or 8.18% lower to $177.05 per share in the pre-market trading session.

 

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