Oil Price Surge Weighs on US Stocks Ahead of Inflation Data
US stocks are mixed after the Labour Day long weekend as investors return to fresh concerns over oil prices and inflation risks ahead of the FOMC rate decision next week. The market is currently pricing in a 60% chance of a Fed rate hike next week.
The S&P 500 trades above its rising trend line, maintaining a constructive outlook. Support continues to hold at 7,615, the June high, and buyers will look to push towards 7,820, creating fresh record highs.
Oil prices have surged to multi-week highs after Iran-backed Houthis attacked Saudi energy facilities and Tehran threatened economic warfare. Brent rose to almost $100 a barrel, its highest level since July 24, while WTI almost reached $95 a barrel, reflecting physical tightness in the market as tanker flows through the Strait of Hormuz remain well below average levels.