Investing.com - Concerns higher borrowing costs lurk around the corner in the U.S. coupled with fears the Russia-Ukraine conflict is set to escalate sent U.S. stocks falling on Tuesday.
At the close of U.S. trading, the Dow 30 fell 0.84%, the S&P 500 index fell 0.97%, while the NASDAQ Composite index fell 0.71%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was up 10.65% at 16.73.
A fresh batch of positive economic indicators reminded investors on Tuesday that the days of ultra-loose monetary policy in the U.S. are coming to an end, with rate hikes taking place possibly sooner than once anticipated.
The Institute of Supply Management reported earlier that its U.S. services purchasing managers' index jumped to 58.7 in July from 56.0 in June.
Economists had expected the index to tick up to 56.3, and the better-than-expected figure sparked demand for the dollar over equities as investors adjusted their timetables as to when the Federal Reserve may hike interest rates, with many betting tightening will come sooner than once anticipated.
The new orders component of the index rose to 64.9 in July from 61.2 in June, the highest reading since August 2005. The employment index rose to 56 from 54.4 in June, the fifth consecutive month of growth.
Also in the U.S., the U.S. Census Bureau reported that factory orders climbed by 1.1% in June, beating forecasts for a gain of 0.6%. Factory orders fell by 0.5% in May.
Geopolitical concerns frayed nerves on Wall Street as well.
Reports surfaced earlier that Russia was amassing more troops near its border with Ukraine, which rattled markets worldwide by stoking concerns an escalating conflict could dampen global recovery.
Since the West slapped sanctions on Moscow several days ago for allegedly meddling in Ukraine's affairs by supporting separatists, Russian troops along the border have reportedly jumped to 20,000 from about half the figure.
Leading Dow Jones Industrial Average performers included Boeing Company (NYSE:BA), up 1.06%, Procter & Gamble Company (NYSE:PG), up 0.23%, and Home Depot Inc (NYSE:HD), which was down 0.02%.
The Dow Jones Industrial Average's worst performers included Intel Corporation (NASDAQ:INTC), down 3.60%, Chevron Corporation (NYSE:CVX), down 2.49%, and Exxon Mobil Corporation (NYSE:XOM), down 1.95%.
European indices, meanwhile, ended the day higher.
After the close of European trade, the DJ Euro Stoxx 50 rose 0.04%, France's CAC 40 rose 0.37%, while Germany's DAX rose 0.39%. Meanwhile, in the U.K. the FTSE 100 rose 0.07%.