US Stocks Hold Steady Amid Ongoing Oil Price Volatility
The US stock market maintained its momentum on Tuesday, hovering near all-time highs set just days earlier. The S&P 500 added 0.1%, while the Dow Jones Industrial Average and Nasdaq composite remained relatively unchanged.
However, the oil market continued to be volatile, with Brent crude prices swinging wildly due to ongoing uncertainty surrounding the war in Iran. Since the conflict began in late February, oil prices have been subject to significant fluctuations, with a single month seeing prices jump from $72 to over $102 per barrel.
The resulting higher oil prices have had a ripple effect on inflation, with gasoline costs reaching an average of $4.01 per gallon, up from under $3.14 just last year. This has led Wall Street analysts to focus on Wednesday's release of the latest monthly inflation reading, which is expected to show inflation slowing to 3.4% in July from 3.5% in June.
Economists are closely watching the outcome, as it could have a significant impact on the Federal Reserve's decision regarding interest rate hikes. A raise would aim to combat high inflation but would also slow the overall US economy by making borrowing more expensive for households and businesses.