 "Wall St dips on Ukraine concerns despite strong data")
Worries over tension abroad had largely faded from Wall Street, with major indexes seeing few negative days over the past two weeks and both the Dow and S&P hitting records.
Ukraine's security and defense council said the border town of Novoazovsk and other parts of Ukraine's south-east had fallen under the control of Russian forces who, together with rebels, were staging a counter-offensive.
While few U.S. companies have heavy exposure to either country, investors are worried about the potential fallout from any escalation in tensions, including increased sanctions.
"The longer this situation goes on, the bigger concern it will become for the market as it is unclear how it gets resolved," said Doug Cote, chief market strategist at Voya Investment Management in New York.
An index of major shares in Europe, which has more exposure to the region, fell 0.6%. If European growth is depressed by the conflict, that could have an indirect impact on the United States. Russia's dollar-denominated RTS index slumped 3.6% while the Market Vectors Russia Exchange-Traded Fund fell 2.9% to $24.37.
The Dow Jones industrial average fell 71.92 points or 0.42%, to 17,050.09, the S&P 500 lost 5.87 points or 0.29%, to 1,994.25 and the Nasdaq Composite dropped 13.58 points or 0.3%, to 4,556.05.
The day's decline is the S&P's biggest since August 7. The index has risen for 11 of the past 14 sessions, and has closed above 2,000 for the past two days. However, recent daily moves have been slight and trading volume has been among the lightest of the year.
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"This data is so good and so strong that it raises the concern that the Federal Reserve will have to come in earlier when it comes to raising rates," said Cote, who helps oversee $215 billion.
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