Oil Price Spike Weighs on US Stock Market Ahead of Fed Meeting
The US stock market is experiencing pressure from rising oil prices, which have increased by roughly $27 since early July. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average was down 517 points, or 1%. Brent crude briefly climbed as high as $99.46 before giving back most of its gain and stabilizing at $97.05.
The increase in oil prices has worsened worries about inflation, which remains a concern for the economy. This week's updates on inflation will be closely watched ahead of the Federal Reserve's meeting next week to decide whether to cut or raise interest rates. The Fed typically raises its main interest rate when inflation is high, but President Donald Trump has been lobbying for lower interest rates instead.
Traders are betting on a 60% probability that the Fed will raise its federal funds rate at the conclusion of its next meeting on September 16. Meanwhile, Qualcomm's announcement of a deal to collaborate with Amazon on large-scale AI data centers helped limit the market's losses, while Boston Scientific and Novartis fell after giving disappointing updates.