US Market
Stocks tumbled on Wall Street on Monday as another big leap for oil prices threatens to squeeze inflation’s grip on the global economy.
The S&P 500 fell 2.2 per cent after a barrel of US oil surged to US$130 overnight on the possibility the United States could bar imports from Russia. Stocks around the world slid even more sharply earlier in the day, also taking their cue from oil’s movements, though their losses moderated as crude receded toward US$120 per barrel.
The Dow Jones Industrial Average was down 610 points, or 1.8 per cent, at 33,004, as of 2:28 p.m. Eastern time, and the Nasdaq composite was 2.5 per cent lower. Stocks are on pace for their worst losses since Russia invaded Ukraine.
Gold and a measure of nervousness on Wall Street were also higher, though not by quite as much as when oil prices hit their peak. The price of gold briefly touched US$2,007.50 per ounce before settling at US$1,995.90, up 1.5 per cent.
Oil prices have soared recently on worries that Russia’s invasion of Ukraine will upend already tight supplies. Russia is one of the world’s largest energy producers, and oil prices were already high before the attack because the global economy is demanding more fuel following its coronavirus-caused shutdown.