Investing.com - U.S. stocks took a nose dive on Thursday on news Russia may consider a proposal to allow its courts to seize foreign assets, while Apple shares dropped on reports its new iPhone released recently may carry glitches.
At the close of U.S. trading, the Dow 30 fell 1.54%, the S&P 500 index fell 1.62%, while the NASDAQ Composite index fell 1.94%.
The Volatility S&P 500 index, which measures the outlook for market volatility, was up 17.86% at 15.64.
Global stock markets plunged on news Russia may consider a proposal allowing Moscow to seize foreign assets, which spooked investors across the globe.
A draft law, a response to Western sanctions slapped on the country for its alleged meddling in the Ukraine conflict, was sent to the Russian parliament Wednesday.
Elsewhere, concerns that a stronger dollar and a still flagging European economy sent larger-cap stocks falling due to fears exporting out of the U.S. to Europe may become more difficult.
Earlier Thursday, Dallas Federal Reserve President Richard Fisher said the U.S. central bank may start raising benchmark interest rates around the spring of 2015, earlier than many market expectations.
While the Fed has suggested its bond-buying program could close in October, uncertainty remains as to when rate hikes may begin in 2015.
Meanwhile in Europe, European Central Bank President Mario Draghi reiterated the bank's commitment to act with more policy measures to boost inflation in the euro zone.
"We stand ready to use additional unconventional instruments within our mandate, and alter the size or composition of our unconventional interventions should it become necessary to further address risks of a too prolonged period of low inflation," Draghi said.
A day earlier, Mario Draghi had already vowed to keep monetary policy "accommodative" for as long as needed, and to use every tool at the ECB's disposal to fight deflation.
Elsewhere, Apple Inc (NASDAQ:AAPL) shares fell on concerns its new iPhone may be prone to glitches, including bending hardware and problematic software upgrades, which sent the tech bellwether falling and brought broader indices down with it.
Apple shares fell 3.79% to end at $97.89.
Leading Dow Jones Industrial Average performers included AT&T Inc (NYSE:T), which was down 0.87%, McDonald's Corporation (NYSE:MCD), also down 0.87%, and Verizon Communications Inc (NYSE:VZ), down 0.87%.
The Dow Jones Industrial Average's worst performers included J P Morgan Chase & Co (NYSE:JPM), down 2.34%, UnitedHealth Group Incorporated (NYSE:UNH), down 2.28%, and Microsoft Corporation (NASDAQ:MSFT), down 2.18%.
European indices, meanwhile, ended the day lower.
After the close of European trade, the DJ Euro Stoxx 50 fell 1.30%, France's CAC 40 fell 1.32%, while Germany's DAX fell 1.57%. Meanwhile, in the U.K. the FTSE 100 fell 0.99%.