US Stocks Decline Amid Rising Oil Prices and Inflation Concerns
US stocks experienced a decline on Tuesday as investors returned from a three-day weekend. The S&P 500 fell by 0.6%, while the Dow Jones Industrial Average dropped 628 points, or 1.2%. The Nasdaq composite dipped 0.3%.
The market was pressured by rising oil prices, which hit a high of $99.46 for Brent crude before settling at $97.92, up 0.9%. This increase in oil costs exacerbates concerns about inflation, with wholesale inflation expected to accelerate to 5.4% from 4.7% in July's report.
The more closely watched consumer price index (CPI) will be released on Friday, showing how much prices have increased for everyday items such as groceries and clothes. Economists expect a slight easing of inflation to 3.3% from July's 3.4%, although this remains above the Federal Reserve's target of 2%.
The Fed is set to meet next week to decide on interest rates, with traders betting on a nearly 60% probability of a rate hike at the conclusion of its meeting on September 16. Higher Treasury yields are putting pressure on companies to boost their profits and stock prices.