Russian attacks on Ukraine have created a negative effect on the economy

NOW: Russian attacks on Ukraine have created a negative effect on the economy

MILWAUKEE, (CBS 58) -- Word of Russia's invasion into Ukraine has created a chain of uncertainty, starting with volatility on the stock market.

The Dow opened Thursday 700 points down, but rallied by the end of the day. Changes at the pumps are also a concern.

The Chicago Board options exchange volatility, better know as vix, gauges fear in the markets. With Russia's attack on Ukraine, it's now at its highest level in the last year.

"My impression of today was that the market was gonna be more or less a blood bath," Said Chris Mayer, Senior Associate for Franklin Place Capital.

Franklin Place Capital is a consulting firm in Milwaukee.

"You know you're getting reports of an invasion more or less and there's a lot of uncertainty and certainly there still is as of this current moment," said Mayer.

All three indexes ultimately closed the day in the green.

"At one point today the benchmark S&P 500 Index was off 10 percent, which would qualify typically as a correction," said Mark Hamrick, Senior Economic Analyst for Bankrate.com.

Hamrick sees the tumble as the latest in a series of economic issues.

"I would say that we should settle in for more volatility. This is obviously not over yet. Whether it's Ukraine, inflation, the federal reserve, the feds meeting is March 16 and it is seen embarking on a series of rate increases some might say are long overdue. Benchmark Interest rates are at record low levels," said Hamrick.

Another fallout from the Russia-Ukraine conflict is gas. Oil prices surged to $100 a barrel following the attack. Gas Buddy is expecting a five to 15 cent increase at the pump in the next week or two, and a national average of $4 a gallon by April or May.

"California's average gas price will likely eclipse five dollars a gallon in the next few weeks," said Patrick DeHaan, Head of Petroleum Analysis for GasBuddy.com.

He says what happens in the coming weeks could hurt driver everywhere if Russia decides to limit exports.

"The primary risk in this situation is Russia's oil flow. It is the second largest borderline, third largest oil producer globally. We are at -19 and so what happens in Russia could have a profound impact in terms of energy availability and price," said DeHaan.

The national average is just over $3.50 a gallon right now.

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