Stocks Hover Near Records as Oil Prices Swing Amid Iran Uncertainty
US stocks hovered around their records on Tuesday as investors awaited the latest inflation data. The S&P 500 added 0.1% and remained near its all-time high set last Friday, while the Dow Jones Industrial Average was up 7 points, or less than 0.1%, and the Nasdaq composite was nearly unchanged.
The oil market saw more volatility as Brent crude prices swung, briefly jumping above $90 in the morning before falling back below $87. The price is currently at $87.99, up 0.3% from Monday's settlement price.
The high oil prices have contributed to inflation concerns, with the average cost for a gallon of regular gasoline reaching $4.01, according to AAA. This has led Wall Street to focus on Wednesday's release of the latest monthly reading on inflation, which is expected to show a deceleration to 3.4% in July from 3.5% in June.
The Federal Reserve's decision on interest rates is also being closely watched, with traders betting on a coin flip's chance that the Fed will raise its main interest rate at its next meeting in September. If it does, this would be the first increase in more than three years and could anger President Donald Trump, who has been lobbying for lower interest rates.