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.
