The S&P 500 fell for the fourth consecutive session on Wednesday, sliding deeper into correction territory, as tensions escalated between Russia and Ukraine.
The S&P 500 fell by 1.8%, and the Dow Jones Industrial Average fell by 464 points, or 1.4%, to achieve the fifth consecutive session of losses.
The technology-focused Nasdaq Composite Index was down 2.6%.
“Stocks will struggle until financial markets have a clear answer on whether the Russia-Ukraine crisis will have a diplomatic solution or a regional war,” said Edward Moya, chief market analyst at OANDA.
Shares also fell broadly, with Delta Air Lines losing 4.1%, and Tesla down 7%.
The e-commerce giant Amazon fell by about 3.5%, and Apple by about 2.5%.
Investors have been watching the brewing tensions between Russia and Ukraine.
Ukraine’s Ministry of Digital Transformation said on Wednesday that a cyberattack happened on Wednesday, blocking certain entities from accessing government websites. Ukraine also warned its citizens not to travel to Russia and leave the neighboring country, if they are there.
Meanwhile, the United Kingdom has warned of its readiness to impose more sanctions on Russia, and the Biden administration announced Wednesday that it will impose more sanctions on the company responsible for building the Russian Nord Stream 2 gas pipeline, after the first tranche of sanctions against Russia on Tuesday that target Russia. Russian banks, the country’s sovereign debt and three individuals.
The VanEck Russia ETF, a US-traded security that invests in major Russian companies, fell nearly 10% on Wednesday.
Meanwhile, investors are also facing concerns about inflation and the Fed’s monetary policy focus, which could result from a rate hike as soon as next month.
Wall Street is betting that there is a 100% chance of a rate hike at the Fed’s March meeting, according to CME Group’s FedWatch tool.