Oil Price Surge Weighs on U.S. Stocks as Inflation Concerns Mount

U.S. stocks are experiencing a pullback on Tuesday, following a three-day weekend and increased tensions in the Middle East.

The S&P 500 fell 0.4%, while the Dow Jones Industrial Average dropped 575 points or 1.1% as of noon Eastern time.

Brent crude prices rose 0.6% to $97.54, up from roughly $72 in early July due to constricted global oil flow.

The U.S. government's inflation reports this week will be closely watched, with economists expecting a 5.4% wholesale inflation rate and a 3.3% consumer inflation rate, both above the Federal Reserve's 2% target.