Dow Futures Plummet by 400 Points as Oil Prices Soar, Driving Inflation Worries

U.S. stocks plunged on Monday as rising oil prices spurred by fears of disrupted supply amid mounting Ukraine-Russia tensions, sending inflation concerns to a new high.

The Dow Futures contract plummeted by 400 points (1.2%) at 7am ET (1200 GMT) while Nasdaq 100 futures and S&P 500 futures dipped by 1.4% and 1.2% respectively.

The Biden administration is also actively seeking out avenues to debar oil imports from Russia, mainly through legislative means amid mounting Western sanctions on the Kremlin for invading Ukraine.

U.S. crude futures surged by 7.1% to $123.86 per barrel at 7am ET. Brent crude also climbed by 6.8% to $126.16 a barrel.

With the U.S. CPI data for the previous month due this Thursday, rising commodity prices are prompting fears of higher inflation which could force the U.S. Federal Reserve to institute a greater tightening of monetary policy. Fed Chair Jerome Powell also revealed that the Federal Reserve is prepared to hike interest rates “more aggressively” beyond the initial 25-basis points at their policy meeting next week if inflation does not abate by then.