Oil Price Volatility Drives US Stock Market Modest Drops
The US stock market saw modest drops on Tuesday, with the S&P 500 falling 0.3% from its all-time high set just two days prior. The Dow Jones Industrial Average dipped by 184 points to 53,791.85 and the Nasdaq composite sank 159.91 to 26,445.45.
The oil market saw more volatility, with Brent crude briefly jumping above $90 per barrel before falling back below $87. It eventually settled at $88.91, up 1.4% from Monday's price.
Higher oil prices have contributed to increased inflation concerns, with the average cost for a gallon of regular gasoline reaching $4.01 according to AAA. This has Wall Street's attention focused on Wednesday's release of the latest monthly reading on inflation, which is expected to show inflation decelerating to 3.4% in July from 3.5% in June.
The Federal Reserve's decision to raise interest rates to combat inflation remains uncertain, with traders betting on a coin flip's chance that the Fed will raise its main interest rate at its next meeting in September.