US Stocks Slide as Oil Prices and Inflation Concerns Take Center Stage
US stocks declined on Friday as investors weighed oil prices and inflation concerns. The Dow Jones Industrial Average dropped 252 points, or 0.5%, to 51,526 shortly after the open.
The S&P 500 fell 16 points, or 0.2%, to 7,622, while the Nasdaq remained relatively flat at 26,416. Oil prices provided some relief after easing below $100 a barrel, but crude edged higher in early trading on Friday.
Swissquote senior analyst Ipek Ozkardeskaya warned that continued pressure on refined-product supplies from the Middle East and Russia could become a growing concern as global inventors and strategic reserves decline. 'If we don't get a sustainable decline in oil prices, refined-product prices will remain elevated and continue to keep inflation expectations at uncomfortable levels,' she said.
Investors are also awaiting fresh economic data later on Friday, with August industrial production and capacity utilization due at 9:15am ET, followed by the August leading indicators report at 10am. The Federal Reserve's interest rate rise in three years may have had some impact on markets, but JPMorgan chief Jamie Dimon cautioned that 'it's not clear to me we've slayed inflation.'