Wall Street futures headed to a sharp low in early Tuesday due to the rising geopolitical tensions between Russia and Ukraine.
Contracts tied to the Dow Jones Industrial Average slipped 1.30% to 33,562.00. It edged down 447.00 points in the latest trading session.
Likewise, the S&P 500 futures declined 1.51% or 66.50 to 4,277.00 points.
Similarly, Nasdaq futures plummeted 2.10% or 295.75 to 13,700.25 points.
This downturn came after Wall Street closed for a holiday on Monday.
Russian President Vladimir Putin stated that he would recognize the independence of two breakaway regions in Ukraine.
Subsequently, he ordered the deployment of peacekeeping forces to enter separatist regions Donetsk and Luhansk.
Accordingly, this move could undermine Western hopes of a diplomatic resolution to the ongoing crisis.
It also spilled fears that this decision could be a pretext for a more extensive Russian invasion.
The United States and European Union denounced Putin’s move, tagging it as a violation of international law.
US President Joe Biden responded by imposing sanctions on the said separatist regions.
The White House prohibited American citizens from engaging in new investment, trade, and financing with Donetsk and Luhansk.
At the same time, the EU vowed to take additional measures.
Meanwhile, Wall Street is also preparing for the tail-end of the corporate earnings season.
Eventually, Home Depot and eBay are among the companies that will report this week.
So far, US stocks have posted a solid earnings season.
About 400 S&P 500 firms have released fourth-quarter earnings, with 77.70% beating analyst expectations.
Global Stocks Fell as Wall Street Dropped
Furthermore, Global stocks hit three-week lows following the decline of Wall Street futures amid worries that Russia will invade Ukraine.
Consequently, MSCI’s world equity index decreased 0.22% or 6.47 to 2,969.41 points.
In the Asia-Pacific region, Japan’s Nikkei 225 index sharply shed 1.96% or 527.18 to 26,383.69 points.
Then, the broader benchmark TOPIX slumped 1.71% or 32.61 to 1,878.07 points.
In Hong Kong, the Hang Seng index sank 2.95% or 713.44 to 23,456.63 points.
China’s Shanghai Composite index tumbled 1.36% or 47.46 to 3,443.15 points.
The benchmark Shenzhen Component also decreased 1.36% or 47.46 to 3,443.15 points.
In Australia, the S&P/ASX 200 index plunged 1.26% or 91.00 to 7,142.60 points.