Stock futures fell Tuesday as geopolitical tensions weighed on market sentiment and Treasury yields rose as investors flocked to safe haven assets. Futures tied to the Dow Jones Industrial Average dropped 400 points, or 0.9%. S&P futures and Nasdaq 100 futures fell 0.7% each. Those declines come after Russian President Vladimir Putin warned the U.S. on Tuesday that the threshold for the use of nuclear weapons had lowered. Under the new doctrine, Russia would consider using such weaponry if it — or allies — were met with “with the use of conventional weapons that created a critical threat to their sovereignty and (or) their territorial integrity.” “Rising geopolitical tensions has been and continues to be a risk for markets,” said Gaurav Mallik, chief investment officer at Pallas Capital Advisors. “The combination of Russia ratcheting up its war rhetoric and uncertainty about how the incoming U.S. presidential administration will respond, is a recipe for stock market volatility.” The new stance comes after President Joe Biden allowed Ukraine to use U.S. weapons to strike inside Russia. Futures also took a leg lower on news that Ukraine hit a Russian border city with U.S.-made missiles. The Russian military said in a statement that a “facility in Bryansk region at 03:25 tonight using six ballistic missiles.” Investors sought protection amid the rising tensions. The Cboe Volatility Index (VIX), considered the best “fear gauge” on Wall Street, spiked above 16. Gold futures were up nearly 1%, and Treasury yields fell. This comes as traders assessed key retail earnings reports, offering insight into the health of the consumer. Walmart rose 4% before the bell after posting strong earnings and hiking its outlook on strong discretionary spending. Nvidia is also set to post its latest quarterly figures Wednesday. Eyes will be on how much demand the company signals for its Blackwell AI chips. About 93% of S&P 500 companies have reported quarterly results so far, with three-quarters exceeding expectations and more than 60% beating revenue estimates, according to FactSet. Wall Street is coming off a mixed session. The Nasdaq gained 0.6%, snapping a four-day losing streak, while the S&P 500 added about 0.4%. The Dow fell about 55 points, or 0.1%, marking three consecutive down sessions for the 30-stock index. Last week, a postelection sell-off was sparked by concerns about the future path of interest rates given a strong economy and labor market. “The market has been in an uptrend because of a strong economy, the Fed continually cutting rates, and strong Q3 earnings,” said Andrew Slimmon, Morgan Stanley Investment Management’s head of the applied equity advisors team. “The market is set up well for equities, and investors are not going to see the pullback they want.” U.S. Treasury yields slid on Tuesday as tensions between Ukraine and Russia increased. The yield on the 10-year Treasury was lower by 7 basis points at 4.349%. The 2-year Treasury was down by 6 basis points at 4.227%. The rise in yields came as investors flooded into the asset as a safe haven amid rising geopolitical tensions. Asia-Pacific markets rose Tuesday after Tesla helped lift Wall Street overnight, and as investors parsed Chinese financial policymakers’ speech at an investment summit in Hong Kong. Australia’s S&P/ASX 200 rose 0.89% to close at 8,374. Japan’s Nikkei 225 closed 0.51% higher at 38,414.43, while the Topix advanced 0.68% to 2,710.03. South Korea’s Kospi climbed 0.12% to end at 2,471.95. Hong Kong’s Hang Seng Index was up 0.40% as of its last hour of trade, while mainland China’s CSI 300 climbed 0.67% to close at 3,976.89. Crude oil futures edged slightly lower on Tuesday, after rallying about 3% in the prior session on fears that the war between Ukraine and Russia is escalating. President Joe Biden has authorized Ukraine to use long-range missiles to hit targets in Russia in a major departure from Washington’s previous position, according to media reports. Russian President Vladimir Putin on Tuesday lowered Moscow’s threshold for using nuclear weapons. West Texas Intermediate December contract: $68.79 per barrel, down 37 cents, or 0.53%. Year to date, U.S. crude oil has declined about 4%. Brent January contract: $73.02 per barrel, down 28 cents, or 0.38%. Year to date, the global benchmark has shed about 5%. Gold prices climbed for a second straight session to hit a one-week peak on Tuesday as the U.S. dollar pulled back from recent highs, while investors awaited comments from Federal Reserve officials for clarity on its interest rate cut policy. Spot gold rose 0.8% to $2,634.20 per ounce, the highest since Nov. 11. Prices gained 2% on Monday, recovering from a two-month low hit reached last Thursday. U.S. gold futures added 1% to $2,641.10.