Wall Street ended in deep red territory on Monday, with tech stocks losing almost 4% after oil prices hit 14-year highs above $130 a barrel on the Russia-Ukraine crisis and analysts saying the ensuing inflation could result in a global recession.
"US stocks declined as surging commodity prices continued to add to worry that economic growth prospects will take a big hit as the Ukraine uncertainty persists," Ed Moya, analyst at online trading platform OANDA, said. "The crippling effect of oil prices above $130 would send many European economies into a recession and that sent major European stock indexes into bear market territory."
Wall Street's three major stock indexes - the Dow Jones Industrial Average index, the S&P 500 and the Nasdaq Composite - closed the session down between 2.5% and 3.7%. All three indexes have seen double-digit losses for the year.
In Monday's trade, both US crude and global oil benchmark Brent soared to highs seen just before the 2008 financial crisis as the United States and Europe kept open the option of banning supplies from Russia, which provides about 10% of world oil supply.
The Dow Jones Industrial Average, made up mostly of industrial stocks, closed down 2.4%. The Dow has lost almost 10% since the year began.
The S&P 500, which groups the top 500 US stocks, settled down 3.5%. For the year, it was down about 12%.
The Nasdaq Composite, made of highly-valued tech stocks such as Facebook, Amazon, Apple, Nasdaq and Google, finished down 3.7%. It has lost almost 18 % so far for 2022. (ANI/Sputnik)
( With inputs from ANI )
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