NEW YORK (TheStreet) -- Stocks were dropping Wednesday on reports that a Malaysian jet had crashed in eastern Ukraine with causes unknown, killing all 295 passengers including 15 crew members. The news comes at a time of escalating conflict along the Ukrainian border, allegedly exacerbated by Russian interference.
Malaysia Airlines has lost contact of MH17 from Amsterdam. The last known position was over Ukrainian airspace. More details to follow.— Malaysia Airlines (@MAS) July 17, 2014
Markets were already lower, though much less so, after a new round of sanctions against Russia from the Obama administration were announced. The latest sanctions were a response to the ongoing conflict along the Ukrainian border.
The latest round of sanctions are more crippling to Russia with restrictions placed on Rosneft, the largest oil company in the world, and Novatek, the second-largest gas producer in Russia.
The Dow Jones Industrial Average slid 0.35% to 17,078.01, gapping from the index's record close of 17,138.2 a day earlier and dropping for its first session in five days. The S&P 500 moved 0.59% lower to 1,969.89, while the Nasdaq dropped 0.79% to 4,391.83.
Gold prices have spiked as investors seek alternate markets to equities suffering from the turmoil and sanctions. Gold futures for August delivery were up 1.8% to $1,322.40, while the Gold Miners ETF (GDX) and SPDR Gold Trust (GLD) spiked 2.4% to $26.91 and 1.7% to $127.14, respectively.