Stocks fell Tuesday, as intensifying tensions between Russia and Ukraine dented market sentiment to start the week.
The Dow Jones Industrial Average dropped about 350 points, dragged down by a 9.5% loss in Home Depot. The S&P 500 fell 0.6%, and the Nasdaq Composite slipped more than 0.7%. The U.S. stock market was closed Monday due to the Presidents' Day holiday.
The major averages pared losses late in the trading day, however. At its session low, the Dow had lost more than 700 points.
President Joe Biden on Tuesday announced sanctions on Russian bank VEB and its military bank, Russia's sovereign debt and certain wealthy individuals and their families. The U.K. has also started targeted economic sanctions against five Russian banks and three wealthy individuals.
That move came a day after Russian President Vladimir Putin said he would recognize the independence of two breakaway regions in Ukraine, potentially undercutting peace talks with Biden. Putin also ordered forces into the two breakaway regions.
"The Russia/Ukraine situation remains very fluid, and tensions remain high, and in the short term that will remain a headwind on stocks, said Tom Essaye, founder of the Sevens Report.
On Sunday, the White House said Sunday that Biden has accepted "in principle" to meet with Putin in yet another effort to deescalate the Russia-Ukraine situation via diplomacy. White House press secretary Jen Psaki said the summit between the two leaders would occur after a meeting between Secretary of State Antony Blinken and his Russian counterpart Sergey Lavrov.
The VanEck Russia ETF, a U.S.-traded security which invests in top Russian companies, dropped more than 12% on Tuesday.
Oil prices rose, with West Texas Intermediate futures jumping 3% to $95.19 per barrel.