US stocks closed lower on Tuesday as investors watched the crisis unfold between Ukraine and Russiabut cut some losses after US President Joe Biden announced the first wave of sanctions against Russia.
The S&P 500 confirmed that it is in correction territory after finishing more than 10% below its record closing level from early January.
The S&P 500 lost 44.13 points, or 1.01%, to 4,304.74 units, while the nasdaq it lost 166.55 points, or 1.23%, to 13,381.58 units. The Dow Jones Industrial Average it fell 482.57 points, or 1.42%, to 33,596.61 units.
The dow jones and the nasdaq had lost more than 2% before Joe Biden gave his speech at the White House
Biden he also said he was hopeful that diplomacy would still be available, adding that the United States had no intention of fighting Russia.
The sanctions, among other things, target Russian banks and sovereign debt.
“It finally gives all this rhetoric, all this strategy, some muscle. This is something that gives the other party some pain and I think it’s appropriate,” said Jake Dollarhide, CEO of Longbow Asset Management.
Earlier, on Tuesday, the general secretary of the NATOJens Stoltenberg said the alliance believed Russia was still planning a major assault on Ukraine following Moscow’s recognition of two breakaway regions in the east of the former Soviet republic.
Britain published a sanctions list and Germany froze the Baltic Sea Nord Stream 2 pipeline project, which would have greatly increased the flow of Russian gas.
kg