Combined with the sanctions announced on Thursday, Mr Biden said, these measures will “weaken Russia so much” that they will give Mr Putin “tough decisions”.

Mr Putin has been pushing for more than a decade for Western recognition of “a Russian sphere of influence in post-Soviet states”, and he cannot stop unless forced to, said Mrs. Stent in an Online Council. on the foreign affairs conference on Wednesday.

In anticipation of the new sanctions, banking stocks fell faster than the markets as a whole. Shares of European banks with the biggest Russian operations plunged: Austria’s Raiffeisen fell 23%, while Italy’s UniCredit fell 13.5% and France’s Société Générale lost about 12%. In the United States, JPMorgan Chase fell about 2.8% and Citigroup 4%.

Energy stocks fell on Thursday, but they were a bright spot for investors who held them in 2022. With a gain of more than 19%, energy is the only sector in the S&P 500 to be up for the year . Halliburton, Occidental Petroleum, Marathon Oil, Hess and Exxon Mobil are among fossil fuel stocks that have gained more than 20% in 2022.

Investors seeking safety in the stock market storm flocked to the usual safe havens – Treasuries and gold.

“Treasuries provide protection in an environment like this,” said David Rosenberg, chief economist at his own firm, Rosenberg Research, in Toronto. “I think the risks of recession are increasing, and there’s never been a recession in modern history where long-term Treasuries haven’t made you money.”

Bond yields, which move inversely to prices, fell. The yield on the benchmark 10-year Treasury note, which reached 2.045% on February 15, fell to 1.96% on Thursday.

And gold, which was below $1,770 an ounce in November, rose above $1,924 at one point in New York, before falling to $1,899. “Gold has always been one of the places you want to go in a crisis,” Rosenberg said.

The report was provided by Anton Troyanovsky, Austin Ramzy, William P. Davis and Jason Karaian.