#stock-market-decline

#stock-market-decline

Once again, the markets are retreating amid rising oil prices in yet another groundhog day trading session. The price of Brent Crude has returned to the $100 level after easing to below $90/barrel earlier this week. Most recently, a White House official has reportedly indicated that U.S. Navy ships plan to steer clear of the Strait of Hormuz due to the unrest.

A negative payrolls number combined with a big jump in oil prices will have traders worrying about stagflation risks. Stagflation is what economists call a stagnating economy combined with high inflation, and a separate report released Friday added to the sour mix after showing that U.S. retailers made less money in January than economists expected.

After leading stocks on Wednesday, the small-cap Russell 2000 was hammered, down 1.92% to close at 2,585. The only good news is that all of the indices finished the day well off the lows. The Dow Jones Industrials took a huge hit on the day, closing down 1.61% at 47,954, while the S&P 500 closed down 0.56% at 6,830.

The S&P 500 fell 0.6 per cent and erased what had been a small gain for the year so far. The Dow Jones Industrial Average briefly dropped more than 1,100 points before finishing the day with a loss of 784, or 1.6 per cent. The Nasdaq composite slipped 0.3 per cent. The losses came as financial markets around the world keep following the cue of oil prices.

The markets are sinking across the board as traders and investors run for the exits on technology and inflation-related fears. All three of the major stock market averages are suffering steep declines, including a 1% drop in the Nasdaq Composite alongside a nearly 2% decline in the Russell 2000 index comprised of small-cap names.

Elon Musk's association with Trump as an advisor has not shielded him from a staggering $114 billion loss in wealth since the inauguration.