Investing.com - U.S. stocks dropped on Monday as investors ditched risk-on asset classes such as equities and flocked to safe-harbor dollar and yen positions despite better-than-expected U.S. factory and personal spending data.
At the close of U.S. trading, the Dow Jones Industrial Average fell 0.94%, the S&P 500 index fell 0.74%, while the Nasdaq Composite index fell 0.72%.
Stocks fell due to the Russian standoff over the Ukraine.
Russian President Vladimir Putin over the weekend sent troops into the Crimea region.
The move sparked fears that the West will impose sanctions on Russia. Russia’s central bank hiked interest rates from 5.5% to 7% on Monday after the rouble fell to new record lows against the euro and dollar, the latter of which served as the asset class of choice over stocks.
Solid U.S. data did little to boost spirits on Wall Street.
The Commerce Department reported earlier that personal spending rose 0.4% in January, above expectations for an increase of 0.1%. Personal spending for December was revised down to a 0.1% gain from a previously reported increase of 0.4%.
The report added that personal income rose 0.3%, beating expectations for a 0.2% increase, after a flat reading in December.
Meanwhile, the core PCE price index inched up by a seasonally adjusted 0.1% in January, in line with expectations, after rising 0.1% in December.
The core PCE price index rose at an annualized rate of 1.2%, above forecasts for a 1.1% increase, after rising at a rate of 1.1% in December.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Elsewhere, the Institute for Supply Management revealed that its manufacturing purchasing managers’ index rose to 53.2 last month from 51.3 in January, beating forecasts for a reading of 52.0.
The report attributed the rise to an increase in new orders after rough winter weather disrupted commerce at the start of the year.
Leading Dow Jones Industrial Average performers included Home Depot, down 0.06%, AT&T, down 0.20%, and United Technologies, down 0.21%.
The Dow Jones Industrial Average''s worst performers included Visa, down 2.04%, 3M, down 1.90%, and Walt Disney, down 1.68%.
European indices, meanwhile, finished lower.
After the close of European trade, the EURO STOXX 50 fell 2.94%, France''s CAC 40 fell 2.66%, while Germany''s DAX 30 fell 3.44%. Meanwhile, in the U.K. the FTSE 100 fell 1.49%.
Please LIKE our Facebook page - it makes us stronger: