Stock market today: Indexes fall as heightened Russia-Ukraine tensions weigh on markets

• US stocks dropped as investors rushed toward safe-haven assets.
• Gold rose and yields fell after Vladimir Putin lowered the threshold for using nuclear weapons.
• Investors are awaiting Nvidia’s earnings report on Wednesday.

US stocks dropped Tuesday morning as investors digested escalating tensions between Russia and Ukraine.

Reports that Ukraine had launched its first cross-border strikes into Russia using Western missiles triggered the flight to safety in markets.

Major indexes dropped by 1% early in the morning as traders snapped up safe-haven assets from gold to Treasury bonds. The 10-year yield slid about four basis points to 4.375%.

In response to the Biden Administration approving the use of US-made weapons for Ukraine to strike inside of Russia, Russian President Vladimir Putin lowered the threshold for the use of nuclear weapons. Conventional attacks on Russia’s soil now fit the conditions for Moscow’s use its nuclear arsenal.

“Rising geopolitical tensions has been and continues to be a risk for markets,” said Gaurav Mallik, the chief investment officer of Pallas Capital Advisors. “The combination of Russia ratcheting up its war rhetoric and uncertainty about how the incoming U.S. presidential administration will respond, is a recipe for stock market volatility.”

Otherwise, investors are gearing up for Nvidia’s earnings report on Wednesday. All eyes are on the chip titan’s next-generation Blackwell chip and the demand from the cloud “hyperscalers” like Meta, Amazon, and other tech firms developing AI tools.

“Nvidia’s earnings is the next non-election related event that could affect market sentiment in the short-term,” Mallik said. “We believe that Nvidia’s next earnings report will help to confirm that the AI story is still intact, especially as investors are understandably anxious about how AI adoption will help drive profits.”

Here’s where US indexes stood at the 9:30 a.m. opening bell on Tuesday:

Here’s what else is happening:

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil slipped 0.22% to $69.01 a barrel. Brent crude, the international benchmark, slid by 0.1% to $73.23 a barrel.
• Gold rose 0.97% to $2,639.9 an ounce.
• The 10-year Treasury yield dropped four basis points to 4.375%.
• Bitcoin climbed about 2% to $91,184