Investing.com - Concerns that Russia's economic woes may slow global growth coupled with uncertainty as to how upbeat the Federal Reserve will view the U.S. economy in its Wednesday policy statement sent Wall Street stocks falling on Tuesday.
At the close of U.S. trading, the Dow 30 fell 0.65%, the S&P 500 index fell 0.85%, while the Nasdaq Composite index fell 1.24%.
The S&P 500 VIX index, which measures the outlook for market volatility, was up 14.99% at 23.48.
Russia's central bank hiked interest rates earlier though the ruble continued to plunge on fears falling oil prices and sanctions slapped on the country for its alleged meddling in Ukraine will damage the economy.
U.S. stocks slid on concerns Russia's problems could slow global growth, possibly prompting the Federal Reserve to account for such headwinds in its statement on interest rates and monetary policy due out on Wednesday.
Soft U.S. housing data added to Tuesday's declines.
The Census Bureau reported earlier that the number of housing starts fell to 1.028 million units in November from 1.045 million in the preceding month, whose figure was revised up from 1.009 million.
Analysts had expected the number of housing starts to rise to 1.030 million last month.
Building permits took a similar turn for the worse.
The Census Bureau reported that the number of building permits issued in November fell to 1.035 million from 1.080 million in the preceding month.
Analysts were expecting the number of building permits issued to fall to 1.060 million last month.
While a broader analysis of the U.S. housing sector still points to recovery, many investors jumped to the sidelines to await the Federal Reserve's statement on Wednesday.
Leading Dow Jones Industrial Average performers included Boeing Company (NYSE:BA), up 1.78%, 3M Company (NYSE:MMM), up 1.40%, and United Technologies Corporation (NYSE:UTX), up 1.18%.
The Dow Jones Industrial Average's worst performers included Microsoft Corporation (NASDAQ:MSFT), down 3.11%, Home Depot Inc (NYSE:HD), down 2.99%, and UnitedHealth Group Incorporated (NYSE:UNH), down 2.46%.
European indices, meanwhile, ended the day higher.
After the close of European trade, the Euro Stoxx 50 rose 2.25%, France's CAC 40 rose 2.19%, while Germany's DAX 30 rose 2.46%. Meanwhile, in the U.K. the FTSE 100 rose 2.41%.
On Wednesday, expect markets to move on the Federal Reserve's statement on monetary policy and interest rates.
Elsewhere, the U.S. is to release data on consumer inflation and the current account.