US stocks slump after Putin raises geopolitical tensions with nuclear threat

US stocks fell Tuesday, with risk appetite hit as geopolitical tensions were raised by hawkish comments about nuclear weapons from Russian President Vladimir Putin.

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 issued a warning to the United States earlier Tuesday, lowering the threshold for a nuclear strike just days after the administration of Joe Biden reportedly allowed Ukraine to fire American missiles deep into Russia.

Russia would now consider a nuclear strike if it, or its ally Belarus, faced aggression "with the use of conventional weapons that created a critical threat to their sovereignty and (or) their territorial integrity", the new doctrine said,

This represented a change from the previous iteration which stated that Russia may use nuclear weapons in case of a nuclear attack by an enemy or a conventional attack that threatened the existence of the state. Walmart lifts forecasts

The highlight of Tuesday's earnings slate came from Walmart (NYSE:WMT ), as the retail giant raised its annual sales and profit forecast for the third consecutive time, with people buying more groceries and merchandise online and at its stores, a sign that it may be gaining market share ahead of the holiday season.

Walmart stock rose 2.5% as a result.

Lowe's Companies (NYSE:LOW ) stock fell 4% after big-ticket spending remained strained, even as the home improvement retailer forecast a slower-than-expected drop in annual comparable sales.

The week's main corporate release is due Wednesday from chipmaking giant NVIDIA (NASDAQ:NVDA ), the world’s most valuable listed company.

Nvidia is considered as a bellwether for AI demand, with its earnings likely to set a course for technology stocks in the coming days.

The company’s shares have nearly tripled in value this year, as it logged strong demand from the rapidly growing AI sector. Nvidia makes the most advanced AI chips in the market.

Elsewhere, server maker Super Micro Computer (NASDAQ:SMCI ) rallied over 23% after it said it had appointed a new auditor and was on track to file its financial reports for the year. Crude rises on Russian tensions

Crude prices rose Tuesday, bouncing back from earlier losses on the raised geopolitical tensions.

By 09:35 ET, the U.S. crude futures (WTI) gained 0.5% to $69.53 a barrel, while the Brent contract rose 0.4% to $73.61 a barrel.

Oil prices surged over 3% on Monday after Equinor said it had halted production at its Johan Sverdrup oilfield in Norway, the biggest oilfield in Western Europe.

The outage presents some uncertainty over oil supplies in the region, and added to the concerns created by the Biden administration’s decision to allow Ukraine to use US-made weapons to strike deep into Russia, particularly following Putin's nuclear warning. 

The American Petroleum Institute is set to release its latest forecast of US crude stock piles later in the session.

(Ambar Warrick contributed to this article.)

Source: Investing.com