US stocks fall as higher energy prices collide with lowered growth forecasts

• US stocks closed lower on Monday as fears of rising oil prices and slower 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 closed lower on Monday, erasing early morning gains as investors grapple with a continued rise in inflationary pressures and the outlook for slower economic growth.

Energy prices continued their rise, with oil rising to a seven-year high above $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 at the 4:00 p.m. ET close on Monday:

• S&P 500: 4,361.12, down 0.69%
• Dow Jones Industrial Average: 34,496.78, down 0.72% (249.47 points)
• Nasdaq Composite: 14,486.20, 0.64%

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.

JPMorgan CEO Jamie Dimon called bitcoin "worthless" at a conference on Monday and questioned its 21 million fixed supply.

SoFi surged as much as 14% after Morgan Stanley initiated the fintech company with an "overweight" rating and said the stock could surge 54% from Friday's close.

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.

Bank of America said Starbucks is poised to surge 21% as its loyalty rewards program drives growth and protects the coffee retailer from competition.

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.