Stocks were down on Monday (March 7) as investors were increasingly concerned about the rising cost of energy as the Russian invasion of Ukraine continued. On Sunday, the average price of gas topped $4 a gallon in the United States and is expected to go even higher in the coming days.
The Dow Jones Industrial Average finished the day down by 803 points. The S&P 500 fell further into correction territory, dropping by more than 1207 points. The NASDAQ also slipped into correction territory, losing over 482 points.
The downturn has been driven by concerns that rapidly increasing energy prices will stifle growth and push inflation even higher. NBC News reports that forecasters are predicting that Europe's economy could head into recession while tough economic sanctions will cause the Russian economy to experience a double-digit decline.
"Consequently, 'stagflation' is rapidly becoming the central focus in portfolio strategies," Jim Paulsen, chief investment strategist for the Leuthold Group, told CNBC. "Preparing for slower growth and more persistent inflation is driving investor fears and actions.