US stocks hold steep losses

Stock indices remained deep in the red late on Monday, depressed by fears surrounding the Russia-Ukraine discord.

The escalating situation between Ukraine and Russia has unnerved investors, with precautionary selling sending shares tumbling on Wall Street today. The international community has been quick to take diplomatic steps to try and alleviate the situation, with the US warning that Russia risks sanctions, but this is now looking like the biggest showdown between Russia and the West since the end of the Cold War.

Should diplomacy succeed, the whole situation could blow over in a couple of days, with little impact on the stock market, but should the crisis intensify, with President Putin sending troops into the rest of the Ukraine, today’s falls could be just the tip of the iceberg.

With under quarter of an hour to the closing bell in New York, the Dow Jones was down 1.14% or 186 points at 16,135, while the S&P 500 was off 0.84% at 1843.9.

No doubt political headlines will continue to dominate the financial markets tomorrow, with the US macro-economic calendar remarkably empty anyway until Wednesday, and I would expect caution to likely obstruct any kind of value buying of stocks for the time being.

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