US close: Stocks record losses as Russia-Ukraine tensions heat up

dl nyse new york stock exchange wall st street city finance dow jones nasdaq sp finance dollar dollars us usa united states of america 2 — New York Stock ExchangeSharecast photo / Josh White

Wall Street stocks recorded losses on Tuesday as investors returned from a break in observance of George Washington's birthday to an escalation in tensions between Russia and Ukraine.

At the close the Dow Jones Industrial Average was down 1.42% at 33,596.61, while the S&P 500 was 1.01% softer at 4,304.76 and the Nasdaq Composite saw out the session 1.23% weaker at 13,381.52.

The Dow closed 482.57 points lower on Tuesday, reversing gains recorded in the previous session.

The mood turned sour after Russian President Vladimir Putin said he would recognise the independence of two breakaway regions in Ukraine, potentially undercutting peace talks with US President Joe Biden. Putin later ordered forces into the two regions. The announcement was then followed by news that the White House will impose sanctions on separatist regions of Ukraine, with the European Union also vowing to take further measures.

Biden has accepted to meet with Putin "in principle" as part of his administration's efforts to deescalate the Russia-Ukraine situation. The meeting will occur after Secretary of State Antony Blinken and his Russian counterpart Sergey Lavrov speak.

On the macro front, the US housing index increased to 367.20 in December from 362.80 points in November and was up 17.5% year-on-year for the fourth quarter, according to the Federal Housing Finance Agency.

Elsewhere, the IHS Markit US manufacturing PMI increased to 57.5 in February from 55.5 in January, beating forecasts of 56, according to preliminary estimates, as production rose at a quicker rate but was hampered by supply-chain disruptions and labour raw material shortage.

Finally, the Conference Board's consumer confidence index fell slightly in February, following a decrease in January, to now stand at 110.5, down from 111.1 in January.

In the corporate space, Home Depot beat sales estimates in its fiscal fourth-quarter and predicted that it will see further growth in 2022, while Macy's fourth-quarter earnings topped estimates as the retailer said sales outpaced expectations and a strategic review of its operations led it to accelerate its turnaround plans.

Dow Jones - Risers

McDonald's Corp. (MCD) $252.70 0.84%
Amgen Inc. (AMGN) $221.41 0.29%
Travelers Company Inc. (TRV) $171.08 0.26%
Verizon Communications Inc. (VZ) $53.90 0.13%
Dowdupont Inc. (DWDP) $30.52 0.00%
Honeywell International Inc. (HON) $230.94 0.00%
Microsoft Corp. (MSFT) $287.72 -0.07%
JP Morgan Chase & Co. (JPM) $151.87 -0.18%
International Business Machines Corporation (CDI) (IBM) $123.92 -0.35%
Caterpillar Inc. (CAT) $191.22 -0.39%