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  • US stocks were mostly lower on Monday as fears of rising oil prices and slower GDP growth hit investors.
  • Rising prices and slower growth are the prime ingredients of stagflation, which has historically been a poor environment for stock returns.
  • Since 1960, periods of rising inflation and weak GDP growth led to a median S&P 500 quarterly return of -2.1%, according to Goldman Sachs.
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US stocks were mostly lower in early Monday trading as investors grapple with a continued rise in inflationary pressures and the outlook for slower economic growth.

Energy prices continued their rise on Monday, with oil well over $80 per barrel as an ongoing supply crunch overseas helps boost prices for both oil and natural gas.

Goldman Sachs cut its US GDP forecast for the third month in a row due to an ongoing economic drag from the COVID-19 delta variant and the global semiconductor crunch.

Rising prices and slower economic growth are the necessary ingredients for stagflation, which has historically led to a weak median quarterly S&P 500 return of -2.1%, according to Goldman.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Monday:

Crypto mining manufacturer Bitmain said it will stop shipping its equipment to China following the government's crackdown on cryptocurrency mining.

Ether co-founder Vitalik Buterin said "shame on bitcoin maximalists" who support El Salvador's president in forcing businesses to accept the cryptocurrency.

Wedbush reiterated its bullish view on cybersecurity provider Palo Alto Networks, arguing the stock could rise 22% from current levels as it sees increased cyber security spending by the government.

West Texas Intermediate crude oil rose as much as 1.85%, to $80.82 per barrel. Brent crude, oil's international benchmark, jumped 1.61%, to $83.72 per barrel.

Gold fell as much as 0.14%, to $1,754.90 per ounce.

Read the original article on Business Insider