Oil Price Volatility Continues to Impact US Stocks

US stocks have slipped further from their records as uncertainty about oil prices continues to affect the market. The S&P 500 fell 0.4% on Tuesday, while the Dow Jones Industrial Average was down 170 points, or 0.3%. The Nasdaq composite fell 0.7%, and Brent crude briefly jumped above $90 in the morning before falling back below $87.

The price of oil has been volatile since the US and Israel attacked Iran in late February, leading to the closure of the Strait of Hormuz and a significant increase in oil prices. Brent's price has veered between $72 and $102 per barrel over the past month, with the current price at $88.91, up 1.4% from Monday.

The impact of higher oil prices is being felt by consumers, with the average cost for a gallon of regular gasoline now at $4.01, according to AAA. This has led Wall Street's attention to focus on Wednesday's inflation reading, which is expected to show inflation remains high but decelerated to 3.4% in July from 3.5% in June.