S&P 500 confirms correction as Ukraine crisis rages

U.S. stocks ended lower on Tuesday, with the S&P 500 falling into correction territory, as investors remained on edge over developments in the Ukraine crisis, though shares regained some ground after U.S. President Joe Biden announced the first wave of sanctions against Russia.

The Dow fell nearly one and a half percent and the S&P finished down a percent, while the Nasdaq slid almost one and a quarter percent.

Sam Stovall, chief investment strategist at CFRA Research, said Wall Street is gauging any further impact from the conflict between Russia and Ukraine.

"Well, right now, the market is sort of scratching its head, wondering what this really means. I think certainly because the Dow was off by more than 700 points, at one point during the day, that investors are really just calling it for what it is, which is an invasion of Ukraine, even though Putin is simply acknowledging and recognizing the breakaway provinces. So, I think it's a very fluid situation, and investors are basically saying, 'I will sell first and ask questions later.'"

Stovall said investors should keep their cool as he expects the longer-term impact of the issues in Europe to be fleeting.

Still, the geopolitical tensions and the expectation of a more hawkish Fed have combined to take the S&P 500 down nearly 10 percent from its January peak.

Shares of Home Depot fell almost 9 percent after the company reported a decline in profit, as a jump in transportation and labor costs ate into gross margins.

Shares of Tesla fell more than 4 percent, after news the electric car-maker was hit by another lawsuit, this time by a former construction manager alleging he was fired for reporting widespread safety violations and race discrimination at Tesla's factories.