Oil Prices Surge to May Levels, Weighing on Wall Street

Oil prices have surged to levels not seen since May, causing concerns about inflation and weighing on Wall Street. The S&P 500 fell 0.5% and is on track for a fourth straight loss, while the Dow Jones Industrial Average was down 319 points or 0.6%. Brent crude rose 5.9%, topping $105 per barrel for the first time since May.

The rise in oil prices has pushed the price of gasoline to nearly $4.28 per gallon across the United States, up nearly 34% from last year. This is not only affecting consumers at the pump but also driving up costs for products that move by truck to store shelves.

Wholesale inflation accelerated to 5.4% in August, up from 4.8% in July. Retailers may eventually pass these increases onto shoppers. The Federal Reserve could respond by raising its main interest rate, which would make borrowing more expensive and slow the economy.