S&P 500 and Nasdaq erase losses as Wall Street shrugs off Ukraine-Russia tensions: Live updates

The Nasdaq Composite gained Tuesday, driven by Nvidia shares, as investors attempted to shake off concerns of rising geopolitical tensions between Ukraine and Russia.

The Nasdaq Composite added 0.5%, while the S&P 500 gained 0.2%. The Dow Jones Industrial Average dipped 110 points, or 0.3%.

One bright spot was Nvidia, which gained 2% ahead of its closely-watched earnings report after the bell Wednesday. Walmart added 5% after posting better-than-expected earnings and hiking its outlook on strong discretionary spending. Tesla rose 2%, bringing its month-to-date rally to 38%. Shares are headed for their best month since January 2023.

“The underlying trend for the market is positive,” said Keith Lerner, Truist’s co-chief investment officer. “The geopolitical stuff — that’s certainly a risk — but you’re seeing some modest selling. I’m not seeing panic. It’s more of a digestion of the recent gains.”

The market pressure began overnight after Russian President Vladimir Putin warned the U.S. that the threshold for the use of nuclear weapons had lowered, a new stance coming after President Joe Biden allowed Ukraine to use U.S. weapons to strike inside Russia.

Then losses accelerated on news that Ukraine hit Russian border region Bryansk with U.S.-made missiles, according to the Russian military. The New York Times confirmed the attack, citing U.S. and Ukrainian officials. The attack was on an ammunition warehouse, according to the report.

“Rising geopolitical tensions has been and continues to be a risk for markets,” said Gaurav Mallik, chief investment officer at 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.”

Treasurys increased as investors moved into the safe haven, driving yields lower. Gold futures also gained. The Cboe Volatility Index (VIX), considered the best “fear gauge” on Wall Street, spiked around 16

Wall Street is coming off a mixed session. The Nasdaq gained 0.6%, snapping a four-day losing streak, while the S&P 500 added about 0.4%. The Dow fell about 55 points, or 0.1%, marking three consecutive down sessions for the 30-stock index. Last week, a postelection sell-off was sparked by concerns about the future path of interest rates given a strong economy and labor market.