US Stocks Slide as Oil Prices Rebound and Inflation Concerns Rise
US stocks slipped on Wednesday as oil prices rebounded and a strong report on US business activity raised concerns about inflation.
The S&P 500 fell 0.6% and is now 1.1% below its record set last month, while the Dow Jones Industrial Average was down 87 points, or 0.2%, in the first hour of trading. The Nasdaq composite dropped 1.1% from its own all-time high.
The price for a barrel 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 concerns about the war with Iran. Despite this recent drop, Brent remains much higher than its pre-war price of around $72.
The surge in oil prices has pushed yields higher in the bond market, making borrowing more expensive and potentially slowing the economy. The yield on the 10-year Treasury jumped to 5.05% from 4.96% late Tuesday, a significant move for the bond market.