Market Volatility as U.S. Stocks Dip Amid Geopolitical Tensions

U.S. stocks fell on Monday in a holiday-shortened week marked by geopolitical tensions and anticipation of Federal Reserve interest rate changes. Defensive stocks showed some strength, countering broader selloffs. Gold also declined while oil prices surged, influenced by Russia-Ukraine tensions and Middle East developments.

The U.S. stock market experienced a dip on Monday as investors navigated geopolitical tensions and Federal Reserve expectations amidst a curtailed holiday trading week. While most sectors suffered broad selloffs, defensive stocks showed resilience, offering some respite.

Market analysts, like Rob Haworth of U.S. Bank Wealth Management, noted a reversal from the gains observed in the preceding week. Hopes for a diplomatic resolution between U.S. and Ukraine leaders, aimed at ending Russia's war on Ukraine, were dampened following Russia's accusations against Ukraine.

Globally, markets approached the year's end with strong performance despite the year's challenges. Oil prices spiked, influenced by geopolitical developments, while gold and other precious metals faced sharp declines due to profit-taking activities.

(With inputs from agencies.)