US markets tumbled; Visa & Mastercard fall on Russian suspension; Airlines hit by rising fuel costs
- The Nasdaq fell 3.62% on Monday to close the session at 12,831 points.
- Visa and Mastercard dive after announcing suspension of services in Russia.
- Airlines shares hit by rising oil prices and concerns over decreasing travel demand.
The US markets tumbled on Monday as investors grew concerned that skyrocketing oil prices will fuel already high inflation, in addition to the war in Ukraine and US imposed sanctions on Russia could impact US businesses. Brent crude oil, the global benchmark, topped US$130/barrel during the session, its highest rate since 2008.
The Dow Jones entered correction territory, falling 2.37% to finish the trading day down 797 points to close at 32,817 points.
The tech heavy NASDAQ fell 3.62% to finish the trading day down 482 points to close at 12,831 points.
One bitcoin is worth US$38,208 going into the Asian trading day.
The Australian dollar is firm against the major currencies and is buying 73.13 US cents.
Visa and Mastercard shares fell 4.8% and 5.4% respectively on Monday after the multinational financial services corporations announced the suspension of services and operations in Russia over the weekend. The companies said any transactions made with Mastercard or Visa cards issued by banks in Russia won’t work outside of Russia.
US-based airlines took a hit on Monday as investors fear the rising cost of oil will increase fuel prices for airlines, in addition to holding concerns over decreasing travel demand due to geopolitical tensions in Ukraine. United Airlines fell 15%, American Airlines lost 12% and Delta fell 12.72%.
And TikTok and Netflix have joined the growing list of corporations exiting Russia, with Russians no longer able to access Netflix and live streaming and new content is suspended on TikTok in Russia.
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