Stocks swung, oil prices jumped and the price of nickel surged so much that trading for it was shut on Tuesday, as the U.S. banned imports of oil from Russia and the economic fallout from its invasion of Ukraine kept rocking markets.
The S&P 500 fell 30 points, or 0.7%, on the day. That extended a three-day slide where worries about a possible, painful combination of higher inflation and a slowing economy triggered the index’s worst day in 16 months.
The Nasdaq composite sank 0.3% and is down more than 20% since November, putting the tech-heavy index in “correction” territory. The Dow Jones Industrial Average also lost ground, falling 185 points, or 0.6%, to close at 32,633.
At the center of Wall Street’s wild recent swings has been the price of oil, which has surged on worries global supplies will be upended because Russia is one of the world’s largest producers. After President Joe Biden announced the ban on imports of Russian oil, a barrel of U.S. crude was 6.9% higher at $127.61 per barrel. It got even higher a day before as worries rose about a possible ban, reaching $130.50.
Brent crude, the international standard, rose 7.8% to $132.79.
Already high oil prices have pushed the average price of a gallon of gasoline in the country to a record high. Biden said he hopes to limit the pain for Americans, but he acknowledged that the ban will increase gasoline prices.
“Defending freedom is going to cost us as well,” he said.
Biden also said he understood many European allies may not be able to make similar moves, because they are much more dependent on Russian energy supplies. European nations have said they plan to reduce their reliance on Russia for their energy needs, but filling the void without crippling their economies will likely take some time.
