Investing.com– US stocks fell Tuesday as geopolitical tensions escalated following hawkish remarks from Russian President Vladimir Putin regarding nuclear weapons.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average fell 305 points, or 0.7%. The S&P 500 index dropped 32 points, or 0.5%, and the NASDAQ Composite fell 85 points, or 0.5%.
Putin alters nuclear strike threshold
Russian President Vladimir Putin warned the United States, lowering the threshold for a nuclear strike just days after President Joe Biden's administration reportedly allowed Ukraine to fire American missiles deep into Russia.
Russia now considers a nuclear strike if it or Belarus faces aggression with conventional weapons threatening their sovereignty and territorial integrity. This doctrine changes from stating that Russia may only use nuclear weapons in response to a nuclear attack or a conventional attack threatening the state's existence.
Walmart lifts forecasts
Walmart (NYSE:WMT) raised its annual sales and profit forecast for the third consecutive time, reflecting increased grocery and online sales, causing its stock to rise 2.5%. In contrast, Lowe's Companies (NYSE:LOW) saw a 4% drop in stock as big-ticket spending remained strained, despite forecasting a slower decline in annual comparable sales.
The week’s major corporate update is expected from chipmaking giant NVIDIA (NASDAQ:NVDA), which is seen as a bellwether for AI demand and anticipates influencing technology stocks following its earnings report. NVIDIA shares have tripled in value this year due to robust AI sector demand.
Super Micro Computer (NASDAQ:SMCI) saw a 23% increase after announcing a new auditor and plans to file its financial reports for the year.
Crude rises on Russian tensions
Crude prices rose Tuesday, recovering from earlier losses amid elevated geopolitical tensions. By 09:35 ET, U.S. crude futures (WTI) increased 0.5% to $69.53 a barrel, and the Brent contract rose 0.4% to $73.61 a barrel.
Oil prices surged over 3% on Monday after Equinor halted production at its Johan Sverdrup oilfield in Norway, adding uncertainty to regional oil supplies following the Biden administration's controversial decision allowing Ukraine to use U.S.-made weapons deep in Russia, especially after Putin's nuclear warning.
The American Petroleum Institute is expected to release its latest forecast for U.S. crude stockpiles later today.
(Ambar Warrick contributed to this article.)
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