Oil Prices Swing Wildly as US Stocks Hang Near Records
US stocks are holding steady near record highs on Tuesday as investors await the latest inflation reading due out on Wednesday. The S&P 500 was flat, while the Dow Jones Industrial Average rose 101 points or 0.2%, and the Nasdaq composite fell 0.1%.
The price of oil briefly jumped above $90 per barrel before pulling back to $87.18, down 0.6% from Monday's settlement price. The uncertainty surrounding the war with Iran continues to impact global markets, causing oil prices to swing wildly since late February.
Higher oil prices have contributed to higher inflation rates, with the average cost of a gallon of regular gasoline reaching $4.01 according to AAA, up from less than $3.14 a year ago. This has Wall Street focused on Wednesday's inflation reading, which is expected to show inflation decelerating to 3.4% in July from 3.5% in June.
The Federal Reserve will use this data to determine whether to raise interest rates to combat inflation. A rate hike could help slow price increases but would also slow the overall US economy by making borrowing more expensive for households and businesses.