Markets Tumble in Response to Downed Malaysia Jet

Rick Newman of Yahoo Finance gives insight into the market reaction of downed Malaysia jet.
3:56 | 07/17/14

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Transcript for Markets Tumble in Response to Downed Malaysia Jet
I'm Michelle Franzen in New York is a New York financial markets closed this Thursday July 17 as the story stock. Markets are reacting today to a terrible tragedy. Russian ETF RSX is down more than 6% on the Malaysia airlines flight that crashed. In -- Ukraine with reportedly 295. People on board no confirmation of how many Americans were on the plane Russia's prime minister. Offered condolences on his FaceBook page. Of course this tragedy has claimed the lives of several hundred people from different countries and has become a great sorrow all those who lost their loved ones today I'm -- for the dead. Let's bring in Rick Newman from Yahoo! finance gave us an idea how the markets are reacting to all of this today. The markets are getting a little -- we've had a lot of sort of disturbing news from around the world the last few minds. I I -- the Middle East Israel Gaza and so forth. In the markets are mostly brush that off but the markets now kind of plunged toward the end of the day here Michelle. In addition to this crash of the jet in Ukraine we've got an apparent. Israeli invasion of the Gaza Strip or something like that going on. There's just a lot of turmoil out there it seems to have built it up to a worrying level at this point we're seeing that show up in the stock market. And give us an idea of what stocks are taking a hit we've obviously you know think that Russian stocks trading here. As well give us an idea what's going on. But we took a look at that Russian ETF that includes a lot of the biggest companies in Russia the big oil and energy companies some banks. That's down about 6% that was down early today based on the new sanctions that President Obama wants -- level on a few particular companies that's. A bit tougher than we've seen out of Washington so far that there -- those -- -- stocks could be down more tomorrow when trading resumes. After what we've seen today with this plane crash apparently shot down. -- as for all the rest of the energy stocks in particular I think that's one thing everyone's looking at. There's no reason to think that anything we're seeing here will directly impact. Energy markets even directly impact oil companies energy companies they get what they sell is needed by people everywhere especially in Europe. So I I don't think we're likely see anything like boycotts or sanctions but that the trick with situations like this is you just never know know quite where that. Turmoil is gonna stop because nobody exactly controls it so there's a lot of worry I'm not sure this is gonna hit the real economy straight away any time soon just a lot of worry right now. And you mentioned that some of those energy companies should not happy and -- -- long term but what about the short term here -- company's American companies. Better doing business in Russia. America there are some instances in which American companies. Have deals with with Russian firms. And that's that's obviously a concern and I think what we've seen so far is sanctions have been very targeted almost -- you might say. You can almost -- their pin pricks really because they've been so targeted it almost seems like they're trying not to do any damage to anybody's economy. But now we -- in this situation where. We have to figure out what happened with this -- this is obviously far more provocative than anything we've seen toward the west out of Russia. You know ever since this whole crisis in Ukraine began so -- -- speed will this signal the start of some new kind of Cold War. Unclear. House -- -- -- -- maybe gonna say look we made a terrible mistake and we will make amends or are they gonna. Remain somewhat militant about it we're I think there's just a lot that we don't know about how this is going on. Fault we will watch tomorrow as this continues. Thank you very much for -- Yahoo! finance for joining us you've been watching stories stocks they would for all the latest headlines I'm Michelle -- in New York.

This transcript has been automatically generated and may not be 100% accurate.

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