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Ukraine tensions pull US stocks lower

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on August 26, 2014

US stocks fell modestly Thursday, dragged down by rising fears about the Ukraine crisis that outweighed encouraging US economic data.

At the closing bell, the Dow Jones Industrial Average was down 40.26 points (0.24 percent) at 17,081.75.

The tech-rich Nasdaq Composite dropped 11.93 (0.26 percent) to 4,557.69.

The broad-market S&P 500 pulled back from Wednesday's record close, shedding 3.13 (0.16 percent) at 1,996.99.

The Ukraine and the West said Thursday that Russian troops were actively involved supporting pro-Kremlin separatists who have been fighting against Kiev's rule since April.

NATO said at least 1,000 Russian troops were on the ground in Ukraine. Moscow insisted none of its soldiers were on Ukrainian soil.

The United States warned it was considering new sanctions against Russia over its involvement in the latest fighting in Ukraine.