By Wall Street major averages slipped on Tuesday as increasing geopolitical tensions spooked traders.
At the time of writing, the Dow Jones Industrial Average dipped 0.9%, while the S&P 500 index fell 0.5.
The Nasdaq Composite lost 0.2% on Tuesday.
Gold futures rose on Tuesday, driven by increased safe-haven inflows due to escalating tensions between Russia and Ukraine.
Late on Monday, Russian President Vladimir Putin warned that the threshold for using nuclear weapons had reduced.
The statement comes amid reports, which claimed that the US had allowed Ukraine to use US-made weapons to launch strikes deep into Russia.
Tensions were on the boil after further reports claimed that Ukraine had attacked the Russian region with US-made missiles, according to Russia’s military.
The New York Times confirmed the attack, citing US and Ukrainian officials. The attack was on an ammunition warehouse, according to the report.
Gaurav Mallik, chief investment officer at Pallas Capital Advisors told CNBC:
Rising geopolitical tensions has been and continues to be a risk for markets.
“The combination of Russia ratcheting up its war rhetoric and uncertainty about how the incoming U.S. presidential administration will respond is a recipe for stock market volatility.”
Walmart hits fresh intraday record high
Shares of Walmart hit a fresh all-time high on Tuesday after the company posted positive earnings results.
The positive third-quarter earnings results had topped analysts’ expectations. The company also raised its outlook.
At the time of writing, the stock was up nearly 3%. The stock was also on course for its best day since August 15, when shares had jumped 6.6%.
The third-quarter adjusted earnings per share came in at $0.58, beating consensus of $0.53.
Store sales in the US for the company expanded 5.3%, beating expectations of an increase of 3.73%.
“We had a strong quarter, continuing our momentum,” Reuters quoted Doug McMillon, President and CEO of Walmart in a report.
In the US, in-store volumes grew, pickup from store grew faster, and delivery from store grew even faster than that. Our teams are executing and delighting our customers and members with the value and convenience they expect from Walmart.
Super Micro Computers soars
Shares of Super Micro Computers soared more than 28% after the company announced its newest auditor.
The company, a key player in storage and server technology, confirmed late on Monday that it had appointed BDO USA as its new independent auditor.
It also submitted a plan to Nasdaq, requesting more time to file its overdue financial reports.
Last month, Ernst & Young’s sudden resignation as the auditor of the company sparked doubts about the business.
However, Super Micro Computers has reaffirmed that it was on track to meet Nasdaq’s financial standards.
Meanwhile, NVIDIA Corporation’s stock rose more than 2% as the company is expected to post its third-quarter results on Wednesday.
Investors will be closely monitoring the demand for the AI company’s Blackwell chip.
Housing starts, building permits decline
According to the US Census Bureau, new housing permits missed expectations due to high mortgage rates and declining activity.
New construction last month totaled a seasonally adjusted annual growth rate of 1.31 million units, 3.1% lower than in September.
Dow Jones had estimated new constructions at 1.34 million. The total was also 4% below October 2023.
On building permits, the total of 1.42 million represented a 0.6% monthly decline and missed the forecast for 1.43 million. Permits declined 7.7% from a year ago.
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