The decision of Russia to invade Ukraine on Wednesday caused the US stocks to fall at the opening bell Thursday.
According to reports, the Dow Jones Industrial Average dropped more than 750 points — or 2.25% — and oil approached $100 a barrel as investors rushed out of riskier assets in view of the Russian invasion of Ukraine.
Sources said the S&P 500, the broadest index of the US stock market, tumbled more than 2.3% as stocks opened after Russian ground forces overnight poured over the border and aerial bombardments struck Ukraine’s cities and military bases.
The key index is poised to enter correction territory, defined as a 10% decline from its recent high hit on Jan. 4.
It was learned that due to the Russian invasion, the tech-heavy Nasdaq index also opened sharply lower, down 2.4%.
Financial experts said the Russia-Ukraine conflict has exacerbated fears of a global energy crisis in the days ahead, even as Americans are already paying steep prices at the pump.
The Russian invasion, made the US benchmark oil prices soar 7% to nearly $100 per barrel.
Meanwhile, Brent crude oil prices exceeded $100 per barrel in London for the first time since 2014.
“The US economy is not walled off from Russia’s invasion of Ukraine,” Bankrate senior economic analyst Mark Hamrick said.
“Oil prices have been rising and are rising amid the growing tensions and that’s going to exacerbate already high inflation,” Hamrick added.
Moreover, the CBOE Volatility index, also tracked as a measure of investor anxiety and known as Wall Street’s “fear gauge,” surged as high as 37.00, its highest since Jan. 26.