S&P 500 lost 1.8% or 79 points to close at 4,225. This deepens its “correction,” or 10% loss from its previous peak. The Dow Jones Industrial Average dropped 1.4% and the Nasdaq Composite fell 2.6%.

The broad losses were led by technology stocks. This sector is filled with companies that have high stock values, which tend to be more influential in moving the market up and down.

U.S. crude oil prices were volatile but energy stocks gained ground. The yield on bonds edged up, which is a sign that investors are investing in less risky assets. The 10-year Treasury yield rose to 1.98%, from 1.95% on Tuesday.

“Moment Of Peril”

Wednesday saw the United Nations General Assembly gather to discuss the crisis affecting Ukraine‘s border. In his opening remarks, U.N. Secretary General Antonio Guterres, who cut short an international trip to address the General Assembly on Wednesday, stated that the world was in “a moment of danger.”

The violence in Ukraine’s eastern region is on the rise. Therefore, the government summoned military reservists to the country’s government. On Wednesday, the National Security Council met at Kyiv to ask lawmakers to approve a state of emergency. This would allow authorities to have more power to “strengthen the security of public places” and other critical locations.

Russian leader Vladimir Putin unilaterally recognised the Donbas, Luhansk, and Donetsk breakaway regions as independent from Ukraine on Tuesday and ordered his troops to enter the areas for peacekeeping duties — Guterres called this a “perversion” of the concept.

The U.S., western countries and Germany have responded with sanctions. Germany also withdrew a document required for Russia’s certification of Nord Stream 2’s gas pipeline. As any conflict between Russia or Ukraine could disrupt supplies, energy prices have been volatile due to these tensions. On Wednesday, President Biden announced that his administration will impose sanctions against Nord Stream 2 AG, the company behind Nord Stream 2’s gas pipeline. Its corporate officers have also been halted.

Investors are now more concerned about the global economy because of the possibility of war in Eastern Europe. As investors assess how rising inflation will affect economic growth, and whether the Federal Reserve’s plan for raising interest rates this year will cool down inflation, stocks have been falling in 2022.

Wall Street continues to review how companies deal with supply chain issues and higher costs in its latest round of corporate reports cards.

After a strong fourth quarter financial report, Lowe’s saw a 3.1% increase in profit. Palo Alto Networks, a security software company, saw its profit forecast increase by 3.5% due to strong demand for cybersecurity.

TJX, parent company of Marshalls and T.J. Maxx, saw its fourth quarter financial results disappoint.

Additional sanctions are on the horizon

While many Americans would prefer the U.S. to stay out from the conflict between Russia-Ukraine, the brewing violence is already affecting their wallets. On the uncertainty, gasoline prices could rise further if hostilities escalate, or if U.S. legislators pass another round of sanctions .

“Our feeling is that this saga will continue and many of our contacts expect additional sanctions in days ahead as well a targeted legislative package,” Isaac Boltansky (BTIG’s managing director and director for policy research) wrote in a February 23rd report.

“If Russian aggression escalates as we expect, we should expect quick action. This could include the United States expanding its sanctions to other Russian banks or imposing export controls. Boltansky stated that the export control effort could be both more effective and more complex.

The S&P 500 fell 1% on Tuesday. This put the S&P 500 at 10.3% below its January 3 record high. It entered a correction or a decrease of at least 10%, but not more than 20%. The Dow fell 1.4%, while the Nasdaq composite dropped 1.2%.

Concerns about Russia and Ukraine disrupting supplies of wheat led to an increase in wheat prices. The prices of aluminum and nickel, which Russia is a major supplier to, also increased.

Iran’s nuclear agreement should be renegotiated

Energy markets saw benchmark crude oil fall 86c to $91.49 per barrel in electronic trading on New York Mercantile Exchange. On Tuesday, the contract increased $1.28 to $92.35.

Russia is a major energy producer, and tensions over Ukraine have caused large swings in volatile energy costs — not to mention the potential risks of a wider conflict that could bring down economic activity throughout Europe and worldwide.

The White House is looking at another release from the Strategic Petroleum Reserve. According to the Washington Post Tuesday, officials in the United States plan to divert additional natural gas to Europe.

Some believe that the current situation in Ukraine will allow for the revival of the U.S. Iran nuclear deal.

Boltansky stated that there is a belief among contacts that the ongoing Russian tensions could be a tailwind to the effort to restart Iran’s nuclear pact and allow Iran to return to international oil market after three years.

After President Trump withdrew the United States from the 2015 agreement, which limited Iran’s nuclear program in exchange for international sanctions relief, the deal was ended in 2018.