The downing of a passenger plane flying over Ukraine rattled U.S. financial markets Thursday, deepening a slide set off by a batch of disappointing company earnings and a weak home construction report.
All three major stock indexes ended lower for the first time in a week, but remained near record highs and positive for the year.
Ukrainian officials said a Malaysia Airlines passenger plane carrying 295 people was shot down, although both the government and pro-Russia separatists fighting in the region denied responsibility. The situation raised concerns of wider geopolitical instability in the region and an escalation of tensions between Russia and the West.
Investors responded by seeking refuge in U.S. government bonds. The yield on the 10-year Treasury note fell to 2.46 percent, the lowest level since May. Gold and oil prices rose.
SanDisk, AutoNation, Yum Brands and Mattel were among the biggest decliners after reporting earnings or profit forecasts that disappointed investors. Airline and homebuilder stocks also fell sharply.
The major stock indexes were down in premarket trading as investors pored through the latest company earnings and other news.
All told, the Standard & Poor's 500 index fell 23.45 points, or 1.2 percent, to 1,958.12. The index remains near its most recent all-time high of 1,985.44 set July 3.
The Dow slid 161.39 points, or 0.9 percent, to 16,976.81.
The Nasdaq composite sank 62.52 points, or 1.4 percent, to 4,363.45.
The yield on the 10-year Treasury note fell to 2.46 percent from 2.53 percent late Wednesday. Benchmark U.S. crude oil for August delivery jumped $1.99 to $103.19 in New York. Gold surged $17.10 to $1,316.90 an ounce.