Markets were volatile on Tuesday as investors weighed rising tensions between Russia and the United States.

The Dow dropped nearly 450 points shortly after the opening bell but has since rebounded. It is down nearly 200 points, or 0.5%, in recent trading. S.&P 500 and Nasdaq also rebounded from early losses.

The turbulence comes after Moscow changed its nuclear doctrine after the Biden administration allowed Ukraine to use long-range weapons against targets in Russia.

“Today is a reflection of the concern that, 1,000 days later, the Russia-Ukraine conflict is escalating further,” said Art Hogan, chief market strategist at B. Riley Wealth Management.

Not only did US stocks fall, investors turned to safe havens like gold and US debt. Gold prices rose on Tuesday and U.S. Treasury bond yields fell.

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The Russian Ministry of Defense announced on Tuesday, with great tension, that Ukraine fired US-made ATACMS missiles into Russia’s Bryansk region.

The attack came just two days after the Biden administration gave Kiev the green light to use long-range American weapons against targets inside Russia. President Joe Biden on Sunday authorized Ukraine to use long-range missiles inside Russia, ending a months-long ban aimed at preventing a serious escalation of the conflict.

Oil prices, which rose with the start of the Russia-Ukraine war in 2022, did not change much on Tuesday morning.

“In our view, the fundamental trends of the equity market remain positive, but this news provides an excuse for the market to give back some of its rally,” said Keith Lerner, chief market strategist at Truist Advisory Services.

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