Meanwhile, US stocks seesawed dramatically as investors tried to make sense of a multitude of issues, from geopolitical tensions to an upcoming Fed meeting to earnings season. The ongoing fear of inflation also persists.
At the low point of the session, the market was on track for its worst day since October 2020, with the Dow down more than 1,000 points.
A lot to digest
Investors have a lot on their plate this week.
Traders are anxiously watching the situation in Ukraine as fears mount that the country could be invaded by Russia.
The news that the United States and United Kingdom are withdrawing some staff from the local embassies has led to fears over an escalation of the situation, according to Michael Hewson, chief market analyst at CMC Markets.
In the United States, “stocks tried to claw their way back from a massive Monday liquidation that stemmed from rising fears of aggressive Fed tightening and on fears of Russian invasion of Ukraine,” said Edward Moya, senior market analyst of the Americas at Oanda.
He noted in a report to clients on Monday that the mood had also spread to the oil market, as “uncertainty over coordinated efforts by Russia with Ukraine and China with Taiwan could lead to added risk aversion selling days in the coming weeks.”
Brent crude, the global benchmark, was up 0.7% on Tuesday to $86.89 a barrel.
Then there is the Fed meeting, concluding with Wednesday’s policy statement and subsequent press conference.
— CNN Business’ Anneken Tappe and Julia Horowitz contributed to this report.