U.S. Stocks Lower A Day After Broad Rally

Stocks fell in morning trading on Wall Street Wednesday, Feb. 16, 2022, a day after a broad rally snapped a three-day losing streak.

Photo Insert: Energy prices have been particularly volatile so far this week because Russia is a major energy producer and a military conflict could disrupt supplies and jolt markets.

The S&P 500 fell 0.9% as of 10:19 a.m. Eastern. The Dow Jones Industrial Average fell 248 points, or 0.7%, to 34,743 and the Nasdaq fell 1.4%, Damian J. Troise reported for the Associated Press (AP).

Technology and communications stocks were the heaviest weights on the broader market. Microsoft fell 1.9% and Facebook’s parent, Meta, shed 2.4%. Bond yields edged lower. The yield on the 10-year Treasury fell to 2.03% from 2.04% late Tuesday.

The potential for an escalating conflict between Russia and Ukraine has so far been a key concern for investors this week. Broader markets rallied on Tuesday after Russia claimed to remove some of its troops amassed on the Ukraine border. Tensions still remain high as officials from NATO and the West cast doubt on those claims.

Energy prices have been particularly volatile so far this week. Russia is a major energy producer and a military conflict could disrupt supplies and jolt markets. U.S. benchmark crude oil prices rose 2.2%, reversing course from a 3.6% slump on Tuesday.

Energy stocks gained ground on the reversal. Phillips 66 rose 1.5%. Wall Street is also keeping its focus on the Federal Reserve. In the afternoon, the central bank will release minutes from its latest policy meeting and potentially reveal more clues about the next steps it plans on taking in raising interest rates to fight inflation.

Traders see a 50% chance for a first hike in March of half a percentage point, double the traditional move.

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