S&P 500 confirms correction; Ukraine-Russia crisis keeps investors on edge

© Reuters. FILE PHOTO – A trader works on the floor of the New York Stock Exchange (NYSE) on February 18, 2022 in New York City, US. Reuters/Brendan McDermid

by Caroline Valetkevich

NEW YORK (Reuters) – Wall Street’s main indexes fell on Tuesday, confirming a correction, as the Ukraine-Russia crisis kept investors on edge after Russian President Vladimir Putin recognized two distinct sectors in the country and the region. ordered the troops.

The S&P 500 ended more than 10% below its January 3 closing record high. A correction is confirmed when an index closes 10% or more below its record closing level.

The index narrowed losses and ended the session at its lows after US President Joe Biden announced the first wave of sanctions against Russia, while he hoped diplomacy was still available.

Biden said the US has no intention of fighting Russia. He said the sanctions target, among other things, Russian banks and sovereign debt.

“Ultimately all this rhetoric, this strategy, gives some teeth,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. It’s something to make the other side feel some pain and I think it’s fair. ” ,

Earlier on Tuesday, NATO Secretary-General Jens Stoltenberg said the coalition believed Russia was still planning a major attack on Ukraine, following Moscow’s recognition of two separatist areas in the former Soviet republic’s east. after.

Britain published a list of sanctions and Germany halted the Nord Stream 2 Baltic Sea gas pipeline project, which would have greatly increased Russian gas flows.

All major S&P 500 sectors ended the day lower, led by losses in cyclical sectors, including consumer discretionary and energy.

Falling 482.57 points, or 1.42%, to 33,596.61, the S&P 500 fell 44.11 points, or 1.01%, to 4,304.76, and fell 166.55 points, or 1.23%, to 13,381.52.

An investment advisory firm based in Toledo, Ohio, Alan B. Alan Lanz, president of Lanz & Associates Inc., said the measures announced by Biden were not as drastic as some investors feared.

But he said the effect was likely to be temporary, given that the Ukraine-Russia crisis was not over.

The Dow and Nasdaq were each down more than 2% shortly before Biden spoke.

shares of home depot (NYSE:) the home improvement chain dropped 8.9% after reporting a decline in gross profit margin for the holiday quarter due to a jump in transportation and labor costs.

A decline in the number of issues leading the way by a 3.79-to-1 ratio on the NYSE; On the Nasdaq, a 2.90-to-1 ratio favored the downside.

The S&P 500 posted 6 new 52-week highs and 34 new lows; Nasdaq Composite records 29 new highs and 560 new lows

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