US Stocks Slip as Oil Prices Continue Volatility Amid Iran Uncertainty
US stocks experienced another day of modest losses on Tuesday, unable to reclaim their record highs set just days prior. The S&P 500 fell 0.3% for a second consecutive drop since reaching its all-time high on Friday.
The Dow Jones Industrial Average dipped 184 points, or 0.3%, while the Nasdaq composite sank 0.6%. Meanwhile, oil prices continued to fluctuate due to uncertainty surrounding Iran's impact on global crude supplies.
Brent crude briefly rose above $90 per barrel in the morning before falling back below $87, eventually settling at $88.91, up 1.4% from Monday. This volatility has become a hallmark of the market since the US and Israel attacked Iran in late February, leading to the closure of the Strait of Hormuz.
The high oil prices have had a direct impact on inflation, with the average cost for a gallon of regular gasoline reaching $4.01 according to AAA, up from less than $3.14 a year ago. This has economists and investors eagerly anticipating Wednesday's release of the latest monthly reading on inflation, which is expected to show a deceleration to 3.4% in July from 3.5% in June.