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Stocks plunged to start the week as U.S. oil topped $100 a barrel, raising concerns about a stagflationary environment for the U.S. economy of rising inflation and slowing growth.
The Dow Jones Industrials took a header, losing 873.89 points, or 1.8%, to 46,627.66. The 30-stock index is coming off its biggest weekly slide in nearly a year.
The S&P 500 index dived 99.24 points, or 1.5%, to 6,640.78.
The NASDAQ capsized 296.75 points, or 1.3%, to 22,090.93.
The $100 oil level was seen by many on Wall Street as a breaking point for the economy unless the war is resolved quickly and prices retreat.
U.S. President Donald Trump posted Sunday evening that a gain in “short term oil prices” was a “very small price to pay” for destroying Iran’s nuclear threat.
The war showed little signs of easing despite Trump’s claim it was “already won” with Iran naming Ayatollah Khamenei’s son, Mojtaba, as its new supreme leader, according to reports.
Prices for the 10-year Treasury sat back, nudging yields up to 4.17% from Friday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices skyrocketed $9.43 to $100.33 U.S. a barrel.
Gold prices slumbered $66.20 to $5,092.50 U.S. an ounce.
