NEW YORK (MarketWatch) — The U.S. stock market finished Monday sharply lower amid a global push into safe havens as political tensions in Ukraine and Russia over the Crimean peninsula escalated.
News of an armed invasion over the weekend overshadowed several better-than-expected economic reports in the U.S. The losses in the blue-chips and large-caps were the worst in a month when investors were worried about China and Turkey.
The S&P 500 index (SPX) finished the day 14.02 points, or 0.8%, lower at 1,845.43, after closing at a record on Friday.
The Dow Jones Industrial Average (DJIA) was down as much as 250 points at session lows, but ended the day 153.68 points, or 0.9%, lower at 16,168.03.
Reuters Russian forces are massing at the Crimea border crossing. The Nasdaq Composite (COMP) lost 30.82 points, or 0.7%, to 4,277.30.
As escalating military tensions in Ukraine dominated news on Monday, better-than-expected economic reports did little to provide relief from broad-based selling.
"The most surprising thing is how little anyone can do about Russia's behavior in Crimea," said John Rutlege, chief investment strategist at Safanad.
"This is the time to tighten the risk and stay away from emerging markets," he added.
Nicholas Colas, chief market strategist at ConvergEx Group, a global brokerage company based in New York described jittery markets as being back to 'old normal', with a lot more volatility than we grew accustomed to during the past year.
The implied volatility on the S&P 500 as measured by the CBOE Vix index jumped 14% to 16, last seen on Feb. 3, when markets sold off on fears over Turkey and China.
In economic news, consumers boosted spending in January, but a good chunk of the money went to pay higher utility bills during an unusually cold winter, according to government data released Monday.
TRADING STRATEGIES: MARCH
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The final reading of Markit's U.S. purchasing managers index accelerated in February, the economic information firm said Monday. The final reading for February was the highest level in almost four years. The report shows that output and new business picked up sharply.
U.S. manufacturers expanded at a faster pace in February and business would have been even better if not for severe winter weather, according to a survey of executives.
Lorillard, Inc (LO) share jumped 9.3% on news reports in the Financial Times that Reynolds is exploring a possible deal with its smaller rival. Shares in Reynolds (RAI) rallied 4.8%.
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