Wall Street Stocks Waver as US-Iran Tensions Ease
Wall Street stocks wavered on Monday as tensions between the US and Iran eased. The S&P 500 index fell by 0.2%, while the Dow Jones Industrial Average rose by 218 points, or 0.4%. The Nasdaq composite dropped 0.6%.
The decline in stock prices came after a sharp escalation of fighting between the two nations last week raised concerns about global oil supplies. However, with tensions easing, crude oil prices reversed course and fell by 5.5%, dropping to $86.60 a barrel for October delivery.
Oil prices had surged to over $100 a barrel last week before easing. The war between the US and Iran has curtailed traffic through the Strait of Hormuz, affecting global economies and causing gasoline prices to rise.
The Federal Reserve will provide an update on its interest rate policy on Wednesday, with investors anticipating a 38% chance that rates will be raised. Higher rates can help cool inflation by making borrowing more expensive.