S&P 500 turns negative as market sentiment sours

• Wall Street dips into the red as risk appetite fades.
• The disappointment on the Ukraine - Rusia talks and COVID-19 in China have soured sentiment.

US markets have dropped into negative territory after having opened with gains on Monday. The fragile appetite for risk witnessed during the European session seems to have faded as hopes of a cease-fire in Ukraine dissipate with the increment of COVID-19 cases in China raising alerts.

Expectations of any improvement in the Eastern European crisis have been hammered by the news that China is willing to supply arms to Russia, reported by a NATO official.

Furthermore, Russia has continued bombing Ukrainian cities and according to a local governor, killing nine civilians on an attack on a TV tower in Northern Ukraine.

Meanwhile, Chinese authorities have reported 3.400 new COVID-19 infections on Sunday. This is the largest outbreak in the last two years which is forcing to close schools and cancel activities, raising concerns about a new round of restrictions.

Against this backdrop, the S&P 500 Index dives 0.78% after having appreciated nearly 1% on early trading, the Nasdaq index drops 1.8% whole the Dow Jones ticks 0.2% down at the time of writing.

Technical levels to watch