Stock correction deepens amid simmering Ukraine crisis

NEW YORK (AP) — Technology companies led a broad slide on Wall Street in afternoon trading Wednesday that extended recent losses for the major indexes as the crisis in Ukraine kept markets on edge.

The S&P 500 fell 1% as of 2:21 p.m. Eastern, deepening its “correction," or a loss of 10% from its recent peak. The benchmark index is on track for a fourth straight drop.

The Dow Jones Industrial Average fell 229 points, or 0.7%, to 33,369 and the tech-heavy Nasdaq composite fell 1.4%.

Technology stocks led the broad losses. Microsoft slid 1% and Cisco Systems fell 2.5%. The sector has an outsized influence on the S&P 500 because of Big Tech companies' high valuations.

Retailers and other companies that rely on direct consumer spending also weighed on the market. Amazon fell 2.2% and Starbucks shed 2.9%.

U.S. crude oil prices remained volatile, though energy stocks gained ground. Chevron rose 2.3%.

Health care companies also rose. Johnson & Johnson was up 0.9%.

Bond yields edged higher. The yield on the 10-year Treasury rose to 1.97% from 1.95% late Tuesday.

The losses added to Tuesday's slump and the S&P 500's slide into a correction. The index had its last correction in the spring of 2020, as the pandemic upended the global economy. That correction worsened into a bear market — a decline of 20% or more — as the S&P 500 sank nearly 34% in about a month.

Wall Street has been closely watching developments in Ukraine, where Russia has amassed troops for a new potential invasion. Russia has started evacuating its embassy in Kyiv. It has already sent soldiers into eastern regions of Ukraine after recognizing the independence of some rebel-held areas.

The U.S. and western nations have responded with sanctions and Germany withdrew a document needed for certification of the Nord Stream 2 gas pipeline from Russia. The tensions have made energy prices volatile as any conflict between Russia and Ukraine disrupt supplies.

The potential for a war in eastern Europe has only added to the concerns investors had about the global economy. Stocks have been slipping in 2022 as investors gauge how rising inflation will impact economic growth and whether the Federal Reserve's plan to raise interest rates this year will cool inflation.

Wall Street is also still reviewing how companies are dealing with supply chain problems and higher costs in their latest round of corporate report cards.

Lowe's rose 1.8% after raising its profit forecast for the year following a strong fourth-quarter financial report. Security software maker Palo Alto Networks rose 1.3% after raising its profit forecast on strong demand for cybersecurity.

TJX, the parent of T.J. Maxx and Marshalls, fell 3.9% after reporting disappointing fourth-quarter financial results.