Forex
Dow Plunges as Oil Prices Soar Past $100
The US stock market took a hit on Thursday as oil prices surged past $100 per barrel. The Dow Jones Industrial Average plummeted by 400 points, or 0.76%, while the S&P 500 and Nasdaq Composite also declined by 0.65% and 0.68%, respectively.
The increase in oil prices has sparked concerns about inflation, leading to speculation that the Federal Reserve may raise interest rates next week. Fed funds futures are currently pricing in a 74% probability of a quarter-point rate hike.
Disruptions to shipping through the Strait of Hormuz and the Red Sea have contributed to the surge in oil prices, with WTI crude closing at $102.95 per barrel, marking its highest close since May 19.