Escalating Russia-Ukraine Tensions Rattle Global Markets

Global stock index futures dipped as tensions between Russia and Ukraine surged. Russia's potential nuclear weapon response and Ukraine's missile attack amplified geopolitical scares, driving investors toward safe-haven assets. Defense stocks saw gains, while volatility spiked. Expectations from Trump's administration and upcoming earnings also impacted market dynamics.

Global markets took a hit as U.S. stock index futures suffered declines on Tuesday, sparked by rising tensions between Russia and Ukraine. With President Vladimir Putin indicating potential nuclear retaliation in response to U.S.-backed missile deployments, investors turned to safer investments such as gold and government bonds.

The volatility index climbed significantly, while notable gains were seen in defense stock shares, including RTX Corp and Lockheed Martin. The commodity sector also experienced hikes, particularly among gold miners like Barrick Gold and Harmony Gold Mining. Meanwhile, Tesla's shares saw a decline, contrasting with previous gains.

This geopolitical chaos coincides with market anticipation regarding the economic policies under President-elect Donald Trump, especially as they pertain to interest rate strategies from the U.S. Federal Reserve. The tech sector awaits Nvidia's earnings, crucial for gauging broader market direction.

(With inputs from agencies.)