Wall Street slips on increasing Ukraine tension

U.S. stocks dropped Monday following global equity selling triggered by escalating tension in Ukraine. The Dow Jones Industrial Average plunged 153.68 points, or 0.94 percent, to 16,168.03. The S&P 500 sank 13.72 points, or 0.74 percent, to 1,845.73. The Nasdaq Composite Index slipped 30.82 points, or 0.72 percent, to 4,277.30. The tension in Ukraine roiled global stock market Monday, as investors fled from risky assets including stocks to traditional haven assets, such as gold, U.S. Treasury and dollar. Russian stocks dipped 11 percent Monday and investors dumped the Russian ruble. European shares sold off across the board and Asian shares finished mostly lower overnight. Wall Street followed the suit to lose ground but recouped part of earlier losses, as traders were still optimistic about the U.S. equity despite decreasing risk appetite. Economic data out of the United States came out positive but failed to reverse the downward trend in the stock market. U.S. manufacturing activity expanded in February for the ninth consecutive month, with the index registering 53.2, up from January's reading of 51.3, the Institute for Supply Management said Monday. The number exceeded market consensus. The Commerce Department announced Monday that construction spending in January was estimated at a seasonally adjusted annual rate of 943.1 billion U.S. dollars, 0.1 percent higher than the previous month. The reading also surpassed economists' expectations. Moreover, U.S. personal income increased 0.3 percent in January, while personal consumption expenditures rose 0.4 percent, the Commerce Department said in a separate report Monday. The CBOE Volatility Index, widely considered as a fear gauge of the market, surged 14.29 percent to 16.00. U.S. stocks wrapped up February on a strong note, with the broader S&P 500 back to its record level last week. In other markets, oil prices rose Monday as the escalating tension in Ukraine ignited concerns about the global energy supplies. Light, sweet crude for April delivery moved up 2.33 dollars to settle at 104.92 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery gained 1. 95 dollars to close at 111.2 dollars a barrel. Gold futures on the COMEX division of the New York Mercantile Exchange rallied Monday, as the intensifying situation in Ukraine spurred a flight to safe haven assets, with the most active gold contract for April delivery up 28.7 dollars to settle at 1,350.3 dollars per ounce. The U.S. dollar advanced against most major currencies on jumping demand for safe assets amid Ukraine tensions Monday. In late New York trading, the euro slipped to 1.3734 dollars from 1.3820 dollars of the previous session, and the British pound decreased to 1.6659 dollars from 1.6758 dollars.