U.S. stocks retreated on Monday morning as Russian and Ukraine officials gathered to discuss a potential end to the hostilities between the two sides and the U.S. and its allies increased retaliatory sanctions.
The Dow Jones Industrials collapsed 449.26 points, or 1.3%, to 33,609.49
The S&P 500 faded 44.24 points, or 1%, to 4,340.41
The NASDAQ Composite Index lost 87.78 points, or 0.6%, to 13,606.84.
In U.S. trading, defense stocks like Lockheed Martin and Northrop Grumman rose about 2%. Bank stocks were under pressure, with JPMorgan falling 2.8%. Cybersecurity stocks also outperformed, with Crowdstrike jumping 6%.
The moves come amid turmoil over the conflict between Russia and Ukraine, where Ukrainian forces have held key cities including the capital of Kyiv. At the same time, Ukraine officials have arrived near the border for talks with Russian officials.
In the most recent financial developments, the Central Bank of Russia more than doubled its key interest rate, to 20% from 9.5% in reaction to a currency move that saw the ruble tumble nearly 16% against the U.S. dollar.
Over the weekend, the U.S. joined allies in Europe and Canada in moving to bar key Russian banks from the interbank messaging system, SWIFT. The system connects more than 11,000 banks and financial institutions in more than 200 countries and territories.
Russian military vehicles entered Ukraine’s second-largest city Kharkiv with reports of fighting taking place and residents being warned to stay in shelters.
The price of oil jumped $3.25 to $94.84 U.S. a barrel.
Gold prices hiked $28.60 to $1,914.40 U.S. per ounce,
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