Global stocks drop amid heightened Ukraine-Russia tensions
CNN
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Markets sold off Tuesday as geopolitical tensions escalated between Ukraine and Russia.
The Dow fell 300 points, or 0.7%; and the S&P 500 and Nasdaq 100 both moved around 0.5% lower.
The selling comes after Moscow changed its nuclear doctrine following the Biden administration giving Ukraine permission to use longer-range weapons inside targets in Russia.
"Today is a reflection of concern that, after 1,000 days, the Russia-Ukraine conflict looks like it's getting hotter," said Art Hogan, chief market strategist at B. Riley Wealth Management.
Not only did US stocks fall, but investors piled into safe havens like gold and US debt. Gold prices jumped on Tuesday and US Treasury rates dipped.
Ukraine fired US-made ATACMS missiles into Russia's Bryansk region, Russia's Defense Ministry said Tuesday, in a major escalation.
The attack comes just two days after the Biden administration gave Kyiv the green light to use the longer-range American weapons against targets inside Russia. On Sunday, President Joe Biden authorized Ukraine to use the longer-range missiles inside Russia, ending a monthslong prohibition aimed to avoid drastically escalating the conflict.
Oil prices, which surged at the start of the Russia-Ukraine war in 2022, were little changed Tuesday morning.
Geopolitical risks could ratchet up again, warned Keith Lerner, chief market strategist at Truist Advisory Services, after Putin lowered the threshold for use of nuclear weapons. However, since markets had already expected that response from Moscow, they "are seeing a modest selloff, while US Treasuries and gold get a bid."
CNN's Christian Edwards and Kostyantyn Gak contributed to this story.
This is a developing story and will be updated.
