U.S. Stocks Fall as Oil Prices Rebound Amid Iran Tensions

U.S. stocks fell on Wednesday after oil prices rebounded from their recent decline, driven by concerns over tensions between the U.S. and Iran.

The S&P 500 dropped 0.6% and was 1.1% below its record set last month, while the Dow Jones Industrial Average declined 87 points or 0.2%. The Nasdaq composite fell 1.1% from its all-time high.

The price of Brent oil rose 2.4% to $101.59, reversing a decline that had been ongoing since it hit nearly $110 last week due to fears over the war with Iran.

A preliminary report on U.S. business activity showed growth surged to its strongest level in more than five years, but this was met with concerns about inflation as costs for businesses jumped at the fastest rate in four years.