US stocks closed modestly lower as the United States and Europe appeared headed for collision with Russia over Crimea’s plan to vote on splitting from Ukraine on Sunday.
The Dow Jones Industrial Average finished down 43.22 points (0.27 per cent) at 16,065.67.
The broad-based S&P 500 fell 5.21 (0.28 per cent) to 1,841.13, while the tech-rich Nasdaq Composite lost 15.02 (0.35 per cent) at 4,245.40.
Tensions were rising ahead of Sunday’s Crimea vote on whether to leave Ukraine and join Russia, with long talks between US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov failing to defuse the crisis.
The US and European allies are preparing sanctions against Russia over the issue, which could begin with visa bans on senior Russian officials, according to media reports.
“Sanctions against Moscow have already been more or less priced in the market,” said Peter Cardillo of Rockwell Global Capital.
“But the greatest fear is an escalation of an economic war between Russia and the West,” he said. “Sanctions are a first thing. Then of course who knows what can happen afterwards?”
A lawsuit over Libor rate manipulation from the Federal Deposit Insurance Corporation added to the losses of JPMorgan Chase (-1.1 per cent), Bank of America (-2.1 per cent) and Citigroup (-1.0 per cent).
The three were among 15 major international banks cited in the suit by the US regulator, which is claiming unspecified damages in the case.
Beauty products distributor and retailer Ulta Salon Cosmetics & Fragrance surged 6.4 per cent after reporting strong sales growth in its fourth quarter and a 9.5 per cent rise in earnings.
Boeing led a handful of gainers on the Dow, adding 1.0 per cent. UnitedHealth Group topped the losing column, down 1.7 per cent.
Bond prices were little-changed. The yield on the 10-year US Treasury held at 2.65 per cent, while the 30-year declined to 3.59 per cent from 3.60 per cent. Bond prices and yields move inversely.
