The stock market benchmarks failed to stage a comeback on Tuesday after President Biden announced that the United States would ban Russian imports of oil and energy, thereby raising concerns about gas prices rising further and inflation worsening. The S&P 500 slid 0.73% to 4,170.62, while the Dow Jones Industrial Average declined 0.57% to 32,631.72. The Nasdaq Composite was down 0.28% to 12,795.55.
Historically, large oil shocks have often preceded recessions because energy price hikes cause a range of things to be more expensive to produce and purchase. Furthermore, analysts have warned that the Russian oil ban could accelerate rising oil and food prices and precipitate a recession. In addition, market volatility is evident, and the CBOE Volatility Index (^VIX) has gained 15.3% over the past five days.
