Oil Price Swings Send Stocks Further From Records Amid Inflation Concerns

US stocks slipped further from their records on Tuesday as oil prices continued to swing wildly. The S&P 500 fell 0.3% for a second modest drop since setting its all-time high on Friday, while the Dow Jones Industrial Average dipped 184 points and the Nasdaq composite sank 0.6%. Brent crude briefly jumped above $90 in the morning before falling back below $87.

The erratic oil price moves have become typical since the US and Israel attacked Iran in late February, which led to the closure of the Strait of Hormuz and kept much of the world's oil pent up in the Middle East. The average cost for a gallon of regular gasoline has risen to $4.01 according to AAA, up from less than $3.14 a year ago.

Wall Street is focused on Wednesday's release of the latest monthly reading on inflation, which economists expect to show deceleration to 3.4% in July from 3.5% in June. The Federal Reserve is also considering whether to raise interest rates to keep a lid on inflation, but this could slow down the overall US economy.