Ukraine crisis: Wall Street plunges on opening as Russian invasion rattles markets

US markets followed European counterparts in sell off as extent of invasion became clear

Wall Street fell sharply at the opening on Thursday following the Russian invasion of Ukraine.

The Dow Jones Industrial Average plunged more than 800 points or approximately 2.5 per cent.

Panicked investors fled for the safety of fixed income assets as markets reacted to the worst case geopolitical scenario on the back of the impact of sky-high inflation.

Follow live updates on Biden’s response to the Ukraine invasion

The tech-heavy Nasdaq Composite fell 2.5 per cent on Thursday putting it into bear market territory – down more than 20 per cent from its high in November 2021.

Wall Street joins a global drop in stock markets. The FTSE 100 in London fell 3.3 per cent after Europe awakened to news of explosions in the Ukrainian capital of Kiev, the major city of Kharkiv and other areas.

The DAX in Frankfurt plunged 5.4 per cent and the CAC in Paris lost 4.9 per cent.

Traders in Asia and Europe spent the day trying to understand what the extent of the incursion would be, but when markets in New York opened it had become clearer.

Russian troop movements and reported explosions in Ukraine (Press Association Images)

Bond yields fell as investors sought safety and the price of oil soared to $105 (£78) a barrel — the first time since 2014 it has been above $100 (£75).

The conflict could send prices spiralling even higher at gasoline pumps and grocery stores everywhere.

Russia unleashed all-out war on Ukraine from land, sea and air on Thursday, attacking targets all around the country including the capital Kiev, raising fears that it could push Europe towards its most ruinous conflict since 1945 and prompting international fury at the actions of the country’s president Vladimir Putin.

Follow live updates on Russia’s invasion of Ukraine

The fallout from the conflict was immediate. In addition to energy prices jumping and the pummelling of global stock markets, there are fears that fighting could escalate beyond Ukraine’s borders.

Nato has rushed to give its support to members of the alliance located close to Russia, western nations vowing to impose more sanctions upon Moscow, and Europe is warning of a looming refugee crisis.