Oil Prices Weigh on US Stocks as Inflation Worries Mount

US stocks declined on Tuesday as investors grappled with rising oil prices and concerns over inflation. The S&P 500 fell 0.6%, while the Dow Jones Industrial Average dropped 628 points, or 1.2%. The Nasdaq composite dipped 0.3%.

The increase in oil prices has heightened worries about inflation, which remains above the Federal Reserve's 2% target. The wholesale price index is expected to rise to 5.4% from 4.7% in July, according to economists' forecasts.

The Fed will meet next week to decide whether to cut or raise interest rates. A rate hike would likely slow the economy and curb inflation, but President Donald Trump has been advocating for lower interest rates instead.