United States stocks ended lower on Tuesday as investors were on edge over developments in the Ukraine-Russia crisis, paring some losses after U.S. President Joe Biden announced the first wave of sanctions against Russia.
Biden also said he was hopeful diplomacy is still available, adding that the U.S. had no intention of fighting Russia. He said the sanctions, among other things, target Russian banks and sovereign debt.
"It finally gives all of this rhetoric, all of this strategy, some teeth. This is something to make the other side feel some pain and I think that's appropriate," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
Earlier on Tuesday, NATO Secretary-General Jens Stoltenberg said that the alliance believed Russia was still planning a big assault on Ukraine following Moscow's recognition of two separatist regions in the former Soviet republic's east.
Britain published a list of sanctions and Germany froze the Nord Stream 2 Baltic Sea gas pipeline project, which would have significantly increased the flow of Russian gas.
According to preliminary data, the S&P 500 lost 43.94 points, or 1.01%, to end at 4,304.64 points, while the Nasdaq Composite lost 164.31 points, or 1.21%, to 13,383.76. The Dow Jones Industrial Average fell 484.09 points, or 1.42%, to 33,595.09.
The Dow and Nasdaq were each down more than 2% shortly before Biden spoke.
Shares of Home Depot Inc. dropped after the home improvement chain reported a decline in gross profit margins for the holiday quarter due to a jump in transportation and labor costs.
