US stocks fall after Gazprom shutdown announcement

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NEW YORK, Sept 3 — After following European equities higher yesterday, Wall Street stocks reversed course, finishing sharply lower after Russia kept shut a key gas pipeline to...

NEW YORK, Sept 3 — After following European equities higher yesterday, Wall Street stocks reversed course, finishing sharply lower after Russia kept shut a key gas pipeline to Germany.

In a statement, Gazprom indicated it had discovered “oil leaks” in a turbine during a planned three-day maintenance operation, a statement that was seen skeptically in light of international condemnation of Russia’s invasion of Ukraine. “You can draw a line to that Gazprom news,” said Briefing.com analyst Patrick O’Hare. “We’re going to continue to be stuck with this energy crisis hitting Europe and the prospect of a recession there.” After opening higher, the broad-based S&P 500 finished at 3,924.35, down 1.1 per cent for the day and 3.3 per cent for the week.

Markets have been expecting a third 0.75-percentage-point hike later this month. While the August jobs growth remained solid, unemployment rose to 3.7 per cent from 3.5 per cent.

 

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