US stocks continue to fall as Biden 'hits the aorta of the Russian economy'

 US stocks continue to fall as Biden 'hits the aorta of the Russian economy'

The Dow Jones Industrial Average at one point rose to 585 points but ended the session down 185 points, or 0.56%, to nearly 32,633 points. The chart above shows that March 8 is the 4th consecutive decline of Dow Jones, pushing this index of 30 blue chip stocks deeper into the correction zone. Compared to the peak on January 4, Dow Jones has dropped 11.3%.

The S&P 500 Index also fell 0.72% and remained in the correction zone. The tech-heavy Nasdaq Composite lost 0.28% and sank deeper into a bear market. The chart below shows Nasdaq is down more than 20% from its historic peak last November.

 The small-cap Russell 2000 index bucked the general trend and gained 0.6% on March 8.

US stocks continued to decline when Mr. Biden "hit the aorta of the Russian economy" - Photo 2.

According to CNBC, investors continue to worry about soaring commodity prices and the risk of an economic slowdown due to the Russia-Ukraine conflict. Prices of gasoline, natural gas and precious metals such as nickel and palladium continue to increase, making the risk of economic stagnation combined with stagflation increasingly present.

"The Russia-Ukraine conflict, soaring commodity prices, inflation concerns, and uncertainties related to Fed policy are mounting," said Chris Senyek, chief investment strategist at Wolfe Research. More and more investors are worried about a recession and the stock markets sell off sharply.

WTI crude oil prices jumped 7% to above 128 USD/barrel on March 8 after US President Joe Biden announced to stop importing Russian energy. "Today, I announce that the United States will hit the main artery of the Russian economy. We will ban all imports of oil and gas from Russia," Biden said at the White House and later wrote on Facebook. .

President Biden: The US will ban Russian crude oil imports, dealing a painful blow to Putin's war machine

"The Russian oil and gas ban has broad bipartisan support in Congress and across the country. The American people are united in support of the Ukrainian people and have made it clear that we will does not fund Putin's war," the US president added.

Only about 5% of the oil that the US imports comes from Russia, so this ban does not have too serious an impact on energy security. Senator Joe Manchin of West Virginia said that the US imported about 600,000 barrels of Russian oil every day before the embargo.

The announcement to stop buying energy from Russia was made by Mr. Biden without the response of European allies because these countries depend heavily on Russian oil and gas and it is difficult to find an alternative source in the short term.

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