On Tuesday, US stock indices have tumbled since traders are still monitoring the rising tension between Russia and Ukraine. Yesterday's weekend in the US and uncertainty about the Russia-Ukraine conflict led to a slump in both Russian and the US stock markets.

By the moment of writing the article, stock indices had managed to recoup some of their losses, remaining not far from their previous levels. It is quite possible that during the regular trading session, pressure on stocks will revive. Oil prices also advanced. Thus, WTI futures jumped by 3.95% to $94.67 per barrel.

Yesterday, Russia's President Vladimir Putin recognized the independence of the Donetsk and Luhansk Peoples' Republics. This action may cancel peaceful talks with US President Joe Biden. In addition, the US is planning to impose sanctions against the two regions. The EU also promised to take additional measures in order to intensify pressure on Russia.

Actions of the Russian Federation contradict expectations of the White House. On Saturday, the Biden administration said that the US President agreed to meet with Vladimir Putin in another attempt to settle the conflict between Russia and Ukraine, using a diplomatic approach. White House Press secretary Jen Psaki said that the summit of the two leaders would take place after a meeting between Secretary of State Antony Blinken and his Russian counterpart Sergey Lavrov. However, now, the meeting will hardly take place.

The conflict between Russia and Ukraine has had a significant influence on the market participants' sentiment. Last week, the Dow Jones dropped by 1.9%, whereas the S&P 500 and the Nasdaq Composite lost 1.6% and 1.8% respectively.

The US Fed's actions are also exerting pressure on the market. Most traders are sure that the regulator will raise the benchmark rate several times starting from next month. According to FedWatch CME Group, traders are almost 100% sure that the Fed will hike the key rate at the meeting on March 15-16. The expectations have already affected stocks of some technology companies, which are the most sensitive to changes in monetary policy.

As a result, Treasury bond yields surged. Now, the yield of 10-year bonds totals 1.93% after a short-lived rise to 2%. It is obvious that the Fed will raise the benchmark rate almost at every meeting amid the extremely high inflation rate.

Meanwhile, Wall Street is getting ready for the end of the corporate report period. This week, Home Depot, eBay, and some smaller companies are going to disclose their reports. According to FactSet, more than 77.7% of 400 companies included in the S&P 500 reported better than expected results.

At the same time, gold prices continue climbing to its new highs. Last week, I emphasized that tensions between Russia and Ukraine continued affecting traders' sentiment. This fact was proved by a rise in gold prices. Fresh news pushed gold futures to new yearly highs. Investors continue opening positions on gold since they do not believe that the conflict will be settled fast.

Technical analysis of S&P500

Today, bulls started opening buy positions from the low of $4,265. A rapid return to the level above $4,312 may signal about a fast market recovery. Buyers should protect the support level of $4,320. The asset is likely to test this level today. If the index breaks it, the pressure will rise, thus allowing bears to regain control over the market. In this case, the asset may slide to such lows as $4,265 and $4,223. Bulls are likely to make an attempt to push the price to the resistance level of $4,378. If the asset breaks the level, it is likely to recover to $4,433.