The S&P 500 fell deeper into correction territory on Wednesday after the Pentagon warned of a full-scale Russian invasion of Ukraine.
The Pentagon warned that a full-scale Russian invasion could happen soon.
The S&P 500 lost 1.8% and the tech-laden Nasdaq lost 2.5%, while the blue-chip index was down 1.4%.
The benchmark S&P 500 index fell for the fourth session in a row and is now firmly in correction territory, more than 10% below its record highs earlier this year.
Markets took a hit as more Western countries geared up sanctions against Russia and Ukraine declared a state of emergency.
According to US officials, the Biden Administration warned that Russia has placed 80% of its troops around the country in forward positions, with a full-scale invasion of the country likely to take place imminently.
Delta Air Lines lost 4%, while Macy's fell 5%, as the stock market fell broadly on the news.
Tech stocks, which have been under pressure as bond yields spike amid concerns about the Federal Reserve's tightening monetary policy, also tanked on Wednesday, with the likes of Amazon andTesla falling over 3% and 7%, respectively.
Edward Moya, senior market analyst for Oanda, said that financial markets will struggle to find direction until they know if the Russia-Ukraine crisis will have a diplomatic solution or regional warfare.
Wall Street experts say that the Federal Reserve's war on inflation is more threatening to markets than the Russia-Ukraine crisis. Mark Hackett, Nationwide's chief of investment research, said that investors are reacting emotionally to the crisis between Russia and Ukraine, but history has shown that markets correct themselves quickly.
The S&P 500 has an average correction of 10% a year.
The Federal Reserve is more important for stocks than the Russia-Ukraine Conflict.
Oil prices surge after Putin orders troops into Eastern Ukraine.
Experts say that the Federal Reserve is scrambling to fight inflation.
The stock market fell for the second week in a row.
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