(AP) -- Stocks fell in morning trading on Wall Street Monday as investors watch the developing situation in Ukraine as Russia amasses troops on the border.
The S&P 500 fell 0.6% as of 10:16 a.m. Eastern. The Dow Jones Industrial Average fell 323 points, or 0.9%, to 34,408 and the Nasdaq rose 0.1%.
Smaller company stocks held up better than the rest of the market. The Russell 2000 rose 0.1%.
Health care companies and banks were among the biggest weights dragging the market lower. Pfizer shed 3.3% and Citigroup fell 1.4%.
Bond yields rose. The yield on the 10-year Treasury rose to 2% from 1.94% late Friday.
The broader market stumbled late Friday after the White House told Americans to leave Ukraine within 48 hours over concerns that Russia could invade that country soon. Other governments including Russia pulled diplomats and their citizens out of the country.
Nations are still searching for a diplomatic solution to the situation and Russia's top diplomat advised Russian President Vladimir Putin to continue a dialogue with the U.S. and its allies. A potential escalation of the conflict between Russia and Ukraine weighed heavily on European markets, which fell sharply.
Crude oil prices remained relatively stable while natural gas prices rose 4.1%. Russia is one of the biggest oil producers. Any military action that disrupts supplies could send shockwaves through energy markets and global industry.
The crisis in Ukraine is yet another concern for investors as they try to figure out how rising inflation and looming interest rate hikes will impact investments and the economy. Inflation stands at a four-decade high and the Federal Reserve is planning to raise interest rates to help cool inflation.
The central bank is expected to start raising its benchmark interest rate in March and Wall Street expects as many as seven rate hikes this year.
Investors are also reviewing the latest round of corporate earnings, in part to get a better understanding of how companies are dealing with high inflation. Some of the more notable companies reporting earnings this week include Airbnb on Tuesday, DoorDash on Wednesday and Walmart on Thursday.
Investors will also get more updates on inflation and how that might be impacting spending. The Labor Department will release its January report for prices at the wholesale level on Tuesday and the Commerce Department will release its January retail sales report on Wednesday.