U.S. stocks slid on the first day of March as oil prices surged and investors continue to monitor the fighting between Russia and Ukraine.
The Dow Jones Industrials weakened 696.72 points, or 2.1%, midday Tuesday to 33,195.88
The S&P 500 stumbled 72.09 points, or 1.7%, to 4,301.85
The NASDAQ Composite Index subtracted 199.11 points, or 1.5%, to 13,552.28.
Financial stocks were some of the biggest losers on Tuesday, with Bank of America down 4.5%, Wells Fargo off 4.8% and Charles Schwab tumbling more than 6%.
The lower bond yields could potentially take a bite out of bank profits, while the conflict in Eastern Europe and sanctions on Russia have some traders worried about disruption in credit markets.
Some of the early stock losses were offset by strong Target earnings, as the big box retailer posted profit of $3.19 a share that was well ahead of Wall Street estimates. Shares jumped nearly 12%.
As corporate earnings season winds down, cloud giant Salesforce reports results after the close.
The decline in stocks came as satellite cameras captured a convoy of Russian military vehicles apparently on its way to Kyiv, the Ukrainian capital.
The continued aggression from Russia pushed energy prices higher. West Texas Intermediate crude futures jumped 5% on Tuesday morning, breaking above $101 per barrel and hitting its highest level in seven years.
On the economic front, construction spending data for January came in well above expectations, while purchasing manager’s index readings from the Institute for Supply Management and Markit were both roughly in line with estimates.
Prices for the 10-year Treasury gained sharply, lowering yields to 1.71% from 1.83% on Monday. Treasury prices and yields move in opposite directions.
The price of oil leaped $10.28 to $106.00 U.S. a barrel.
Gold prices hiked $34.60 to $1,935.30 U.S. per ounce.