The S&P 500 index resumed its bearish move after Monday’s recovery. The index and other US markets opened the day steeply lower after concerns over present geopolitical tensions. The expectations of a very hawkish outcome from Wednesday’s Fed meeting also added to investor caution.
Some bargain hunting crept into the trading session, with some investors snapping up stocks perceived to be at bargain prices. This allowed the index to pare about 70% of its earlier losses.
However, sentiment remains negative as tensions continue to mount along the Russia-Ukraine border. NATO and the US are putting forces on alert and are moving heavy military equipment to the region to counter a potential Russian invasion.
The SP 500 has fallen nearly 10% from its 4 January peak and currently trades 1.57% lower on the day.