US stocks dip on ebbing hopes for Ukraine peace talks

NEW YORK (AFP) - Wall Street stocks declined Wednesday (March 30), as doubts about the prospects for a meaningful Ukraine-Russia peace accord snapped a four-session winning streak for the Dow.

After apparent progress in negotiations lifted equities Tuesday, stocks pulled back as authorities in the northern city of Chernigiv said the area was "shelled all night" despite Russia's pledge to "radically" reduce fire there and around the capital Kyiv.

Russian officials also played down hopes of a breakthrough, saying there was nothing "too promising" from the discussions.

"It seems, the Russians are continuing with military operations," said Oanda's Edward Moya.

"Talks have been deemed positive, but many traders are expecting a prolonged period of time before a breakthrough in reaching a peace agreement will happen." Analysts also cited profit taking as a factor in the Dow Jones Industrial Average's 0.2 per cent drop to 35,228.81.

The broad-based S&P 500 fell 0.6 per cent to 4,602.45, while the tech-rich Nasdaq Composite Index tumbled 1.2 per cent to 14,442.27.

Payroll services firm ADP reported US private employers hired 455,000 people this month, slightly more than forecast but less than the upwardly revised 486,000 positions added in February.

The data, which comes ahead of Friday's government jobs report, shows the American labor market remains healthy even as the wider economy struggles with inflation and supply shortages.

Among individual companies, Lululemon Athletica jumped 9.6 per cent as the apparel firm unveiled a US$1 billion (S$1.35 billion) stock repurchase program and reported strong results that included a 23 per cent surge in quarterly revenues to US$2.1 billion.