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Oil prices have risen to multi-year highs as a result of the Russia-Ukraine conflict, pushing the Dow futures down more than 300 points.

On Sunday evening, U.S. equity futures dipped as the price of oil in the United States briefly soared to its highest level since 2008, owing to the ongoing conflict between Russia and Ukraine.

Dow futures were down 365 points, or 1.09 percent, while S&P 500 and Nasdaq 100 futures were down 1.4% and 1.75 percent, respectively.

The U.S. oil benchmark, West Texas Intermediate crude futures, rose 7.68 percent to $124.56 per barrel, after briefly reaching $130 per barrel before pulling down. Brent crude, the worldwide standard, rose 9% to $129.17 per barrel after earlier reaching a high of $139.13 per barrel, its best since July 2008.

In reaction to Russia's war on Ukraine, Secretary of State Antony Blinken stated Sunday that the US and its allies are considering barring Russian oil and natural gas imports.

In a letter to Democratic colleagues, Speaker Nancy Pelosi also stated that the US House of Representatives is "exploring tough legislation" to prohibit the import of Russian oil, which would "further isolate Russia from the global economy."

Gas prices have risen to their highest level since 2008, with the national average reaching $4 per gallon, according to AAA.

Evacuations from Mariupol and Volnovakha were cancelled on Saturday when Russia broke a cease-fire agreement, and violence raged in and around both cities. Russia had again broken a second effort at a brief cease-fire that would allow its civilians to flee, according to the Mariupol City Council on Sunday.

The Dow Jones Industrial Average dropped 179 points, or 0.5 percent, on Friday, marking its fourth consecutive week of losses. The S&P 500 dropped 0.7 percent and finished more than 10% lower than its previous high, indicating a technical correction. The Nasdaq Composite lost 1.6 percent of its value.

Despite favourable U.S. economic statistics released Friday, investors continued to monitor developments in the Russia-Ukraine conflict, which weighed heavily on mood.

"What investors are doing is rotating from Europe to the United States, from cyclicals to big cap defensive type firms," according to Lindsay Bell, Ally's chief markets and money strategist. "That's a good indicator, but we'll need to see a re-rotation back into the riskier, more growthy sections of the market to prove that the risk-on mode is back in effect."

As oil prices rose, energy companies were a bright spot in the market. Occidental Petroleum increased by a massive 17 percent. Meanwhile, as the benchmark 10-year Treasury dipped to roughly 1.73 percent, bank stocks – which benefit from higher interest rates – declined.

European equities fell dramatically this week, ending the week with a 7% loss, their worst run since March 2020. The VanEck Russia ETF, one of the few Russia-related funds still trading, lost 2% this week, ending the week with a loss of more than 60%.

Investors were unable to ignore concerns over the Russian-Ukraine conflict despite positive news from the US Labor Department. The Bureau of Labor Statistics announced on Friday that the economy added 678,000 jobs in February. According to Dow Jones, the monthly job gain exceeded economists' projections of 440,000. The jobless rate has dropped to 3.8 percent.

The Dow and S&P 500 both fell 1.3 percent this week. The Nasdaq Composite Index fell by almost 2.8 percent.

"The bond market absolutely ignored the employment report because people wanted to be defensive over the weekend and not want to own risk as we're seeing the situation evolve," Jeff Sherman, DoubleLine Capital deputy chief investment officer, said on "Closing Bell" Friday. "Right now, the Treasury market isn't focused on backward-looking economic data; it's focused on the current crisis, the Ukraine problem."

Several economic data releases will be announced this week, including the Consumer Price Index for February, which will be released on Tuesday. The crucial indicator is expected to reveal that inflation continues to grow rapidly, keeping the stock market volatile in the coming week.

The JOLTS (Job Openings and Labor Turnover Survey) for February is set to be released on Wednesday.

Earnings are expected to be calmer this week. Oracle, CrowdStrike, and DocuSign are among the big tech companies set to report. Rivian Automotive, Ulta Beauty, and Bumble & Bumble will all make presentations.

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