The stock market gave investors whiplash Monday as Wall Street tried to predict the next events in a rapidly evolving and tumultuous conflict between Russia and Ukraine.
US stocks tumbled in the mid-afternoon Monday after the United States said it would close the US embassy in Kyiv. US officials are ” temporarily relocating ” the small number of remaining diplomatic personnel to Lviv, a city in the west of the country, “due to the dramatic acceleration in the buildup of Russian forces,” Secretary of State Antony Blinken announced Monday. That spooked Wall Street, which fears war in Eastern Europe could be imminent. In addition to the potential for large-scale loss of human life, investors fear a prolonged war between Russia and Ukraine could damage the global economy. Russia remains one of the world’s leading energy exporters, and a war could cut off supply of its natural gas and oil to other countries that depend on it. That could send prices surging at a time when much of the world is already coping with sky-high inflation. The Dow ( INDU) tumbled 400 points, or 1.1%, on Monday. The broader S&P 500 ( SPX) also fell 1.1%, and the Nasdaq ( COMP) was 0.7% lower. Stocks had started the day higher, following reports that a diplomatic resolution between Russia and Ukraine may be reached before an armed conflict begins.
