Although the Russian-Ukrainian conflict that is happening as we speak is in Europe, effects have reached the United States with our Stock Market and economy taking a hit. Just recently, it’s crazy how much stocks plummeted in such a short amount of time. The Jones Industrial Average, a stock market index, dropped 0.5 percent, which translates to about 180 points. According to CNBC, the price index in the United States was just released in February, and it isn’t looking so good. It is expected to show inflation rising continuously. For example, oil is a huge aspect of our economy. Oil has increased more than 20 percent, which is a direct hit to our stock market. The Standards and Poors 500, which is an Index tracker, recently was up 1.3 percent and fell to $4,328. Market exchange Nasdaq was up 2.8 percent and fell to $3,313. Gas prices in the United States are skyrocketing. According to the Gas Prices American Automobile Association, gas prices were on average $3.83 per gallon, and in just one day, they rose 11 cents and 26 cents in just one week. In the United States, the average AAA national average is $4.318 per gallon. These statistics clearly show our stock market and the economy are going into a downhill spiral.

Adam Tatar, a business teacher at Pennridge High School, gives us insight into the US Stock Market since the Russian invasion of Ukraine. Since stock values for oil and other commodities have been declining since the conflict, he talks about how our economy will be greatly affected. “There will be a major impact. Poland put together a $1.4 billion relief package for Ukrainian migrants. Gas went up a ton. I don’t see it stopping. People are scared. A lot of people haven’t seen this issue in their lifetime. Biggest European world conflict in a long time,” Tatar states. If Russia were to withdraw from Ukraine, it could have opposite effects on the stock market, “we will have a lot of negative repercussions either way,” Tatar explains. Following WWII, “Our economy was booming,” Tatar states. The United States could potentially be in a good spot after this conflict, just like in WWII. As far as the effects on investors, the only thing they can do is constantly monitor stocks. Tatar predicts it will be at least six months to a year after the Russian-Ukraine conflict for oil stock values to increase again.

Brian Laiacona, another business teacher at Pennridge, gives us more information on our economy and possible potential outcomes. He talks about how switching our oil source from Russia to another country, or even having our own oil, will put us in a better position financially long term, but there would still be repercussions. “We should switch! We are too foreign dependent. It’s more energy efficient to become our own suppliers,” Laiacona explains. He talks about if this was the case, where the US did switch oil sources, the economy could affect jobs and income along with reduction of prices over time and as a whole. Although, the downside of switching oil sources would be pollution. Overall, there are a lot of hypotheticals on what the United States could do to improve the stock market and economy. Hopefully, the nation can have a strong comeback.

Sources:
https://www.cnbc.com/2022/03/04/russias-ukraine-conflict-big-inflation-report-will-keep-the-stock-market-volatile-in-coming-week-.html
https://gasprices.aaa.com/
https://www.theguardian.com/business/2022/mar/04/ukraine-war-a-catastrophe-for-global-economy-as-stock-markets-plunge