JACKSONVILLE, Fla. — US stocks rallied from a sharp drop at the opening bell Thursday after President Biden announced more sanctions against Russia.
However, all eyes are on the futures and it's looking like the Dow Jones will open in the red again Friday morning as investors keep an eye on the Russia-Ukraine conflict.
So, how are the issues overseas going to affect your wallet?
One local finance expert says, unfortunately, it could very well amplify the inflation we're already seeing here at home.
Russia is a massive commodity producer worldwide. Europe especially relies on the country for oil and natural gas.
"There are other commodities between Russia and Ukraine, for example, wheat is 30% of worldwide production in Russia and Ukraine," Abdel Missa, Jacksonville University finance professor and investment company owner said. "And then there are other commodities such as aluminium, which Russia produces 10%. "
The good news is, Missa says, the United States doesn't depend on Russia. Plus, we aren't currently seeing sanctions on any of these commodities.
However, since this is connected to global trading, the stock markets -- it works its way back here.
Missa says everything is lined up for high inflation.
"We have inflation that's due to the stimulus that we have had, right, both monetary and fiscally. We had inflation as well due to the supply chain and the labor market is tight. Right," he explained. "And then, now, you add to it that we have a supply issue with commodities or potential geopolitical risks. So, this is becoming a major issue for the US economy."
This may lead consumers like you to decide to stop paying for certain products, he explains, which could cause an even bigger problem – StagFlation, high inflation and slow economic growth.
When it comes to utility prices, JEA recently announced electric bills will be slightly lower in March because the price of natural gas is coming down.
However, the Russia-Ukraine conflict could cause the price to rise again soon.