Stocks fell Tuesday, as intensifying tensions between Russia and Ukraine dented market sentiment to start the week.
The Dow Jones withered 482.05 points, or 1.4%, to 33,597.13, dragged down by an 8.9% loss in Home Depot. The Dow fell for its fourth straight session.
The S&P 500 lost 44.13 points, or 1%, to 4,304.74
The NASDAQ index slumped 166.55 points, or 1.2%, to 13,381.52
The U.S. stock market was closed Monday due to the President’s Day holiday.
Home Depot reported quarterly profit of $3.21 a share, three cents better than estimates, and said it sees earnings and revenue growth this year. Shares, however, fell nearly 9%.
Meanwhile, Macy’s dropped 5% despite beating on the top and bottom lines of its quarterly results. Macy’s also authorized a new $2 billion share buyback program and announced a 5% dividend increase
In deal news, Houghton Mifflin Harcourt shares surged about 15.3% after the company said it would be taken private by Veritas Capital in a deal worth $21 a share, representing a nearly 16% premium from Friday’s close. The deal is expected to be completed in the second quarter.
On the economic data front, the IHS Markit manufacturing Purchasing Managers Index rose to 52.5 in February from 50.5. The IHS Markit services PMI jumped to 56 in February from 51.1 the month prior.
President Joe Biden on Tuesday announced sanctions on Russian bank VEB and its military bank, Russia’s sovereign debt and certain wealthy individuals and their families. The U.K. has also started targeted economic sanctions against five Russian banks and three wealthy individuals.
That move came a day after Russian President Vladimir Putin said he would recognize the independence of two breakaway regions in Ukraine, potentially undercutting peace talks with Biden. Putin also ordered forces into the two breakaway regions.
Traders are also keeping an eye on the Federal Reserve, as the U.S. central bank is expected to raise rates multiple times starting next month. Traders are betting that there is a 100% chance of a Fed rate hike after the March 15-16 meeting, with expectations tilting toward a 0.25-percentage-point move.
Prices for the 10-year Treasury gained ground, lowering yields to 1.93% from Friday’s 1.95%. Treasury prices and yields move in opposite directions,
Oil prices gained $1.20 to $92.27 U.S. a barrel.
Gold prices picked up $3.20 to $1,903.00.