Wall Street stocks fell sharply Tuesday afternoon after US President Joe Biden announced new sanctions on Russia following its latest escalations in the Ukraine crisis.
Biden, in a White House address, said the penalties on Russia would go “far beyond” existing sanctions and include moves to cut the country off from Western financing.
Near 1930 GMT, the Dow Jones Industrial Average was down 1.6 percent, or 535 points, at 33,543.24.
The broad-based S&P 500 dropped 1.2 percent to 4,296.61, while the tech-rich Nasdaq Composite Index slid 1.3 percent to 13,369.86.
On Monday, Russian President Vladimir Putin defied Western warnings and approved sending troops into eastern Ukraine to support two rebel regions’ independence claims.
The move prompted significant new sanctions outside of Washington, with Germany halting certification of a key natural gas pipeline.
A note from Oanda’s Edward Moya described the Ukraine situation as a threat to markets because of the risk energy costs will “skyrocket,” noting that fears of war in eastern Europe have already caused a market pullback.
“Geopolitical tensions will continue to undermine economic growth and that should keep equities very choppy until the Russia-Ukraine crisis has a clear conclusion and after the financial markets have a firmer handle on how aggressive Fed tightening will be,” Moya said.