US Stocks Plunge as Oil Prices Halt Decline, Business Growth Raises Inflation Concerns
US stocks declined on Wednesday after oil prices halted their weeklong drop. The S&P 500 fell 0.8% and dropped 1.3% below its record set last month.
The Dow Jones Industrial Average was down 348 points, or 0.7%, as of 1:08 p.m. Eastern time, while the Nasdaq composite was down 1.3% from its all-time high. The climb in oil prices pushed yields higher in the bond market, undercutting stock prices and slowing the economy.
The price for a barrel of Brent oil rose 3.2% to $102.44, reversing a decline that had been falling since nearing $110 last week on worries about the war with Iran.
A preliminary report suggested growth in US business activity surged to its strongest level in more than five years, but also indicated costs for businesses are leaping at the fastest rate in four years due to more expensive fuel. This could lead to higher prices for consumers and worsen inflation.