FX.co ★ US stock market declines sharply after escalating tensions in Ukraine

S&P500

Stocks sank after the start of the military operations in Ukraine.

Early on Thursday morning, February 24, Russian President Vladimir Putin announced a military operation in Ukraine. Numerous missile stroke military facilities in Ukraine. According to various sources, ground troops were spotted near the border of Russia and Ukraine, and the Black Sea.

The Russian Defense Ministry stated that Russia is attacking military targets in Ukraine. DNR-LNR report that they are fighting against Ukrainian troops along their borders.

The Russian stock market plunged by 10% in the morning. As a result, trading has been suspended because the market fell to limits set by the Exchange.

The main US stock indices also dropped on Wednesday following news that Moscow was going to attack Ukraine. It turned out to be true. Yesterday, the Dow decreased by 1.4%, the NASDAQ tumbled by 2.6%, and the S&P 500 fell by 1.8%.

In the morning, features on the S&P500 declined by 2.1%.

Asian stock markets. Japan's stock market shed 2%, while China's stocks dived down by 1.3%.

As for the commodity market, oil prices soared amid the war between Russia and Ukraine. Brent Crude was up by 5% to $101 per barrel.

The S&P 500 is trading at 4,225. It is expected to stay in the range of 4,100 – 4,260.

Biden made a speech to US citizens due to Russia's war against Ukraine. The US and the EU will impose new sanctions against Russia.

Some economists reckon that the Fed may postpone a rate increase.

The US economy will unveil important economic reports today, namely GDP for the 4th quarter. The reading is projected to total 7%. Apart from that, the weekly initial jobless claims report is due today as well as new home sales data. However, investors are focusing their attention primarily on what is happening now in Ukraine and the reaction of the US and the EU.

Analysts are trying to figure out whether the Ukrainian army will fight back or not and how tough new sanctions will be.

The US dollar index is trading at 96.60. It is likely to stay in the range of 96.30 - 96.90. The US dollar soared amid reports of war in Ukraine. The euro fell sharply to 1.1230 against the US dollar.

The USD/CAD pair is trading at 1.2780. It is expected to remain in the range of 1.2700 - 1.2900. The pair is likely to advance amid the strengthening of the US dollar despite a rise in oil prices.

Conclusion: The US market is declining due to the war in Ukraine. Investors should take a wait-and-see approach, waiting for new developments of events.