Oil Prices Nearing $100 Spark Global Market Turmoil

The US stock market plummeted on Tuesday, with the Dow Jones Industrial Average dropping 511 points, or 0.7%, to $74,489. The S&P 500 fell 0.2% and the Nasdaq Composite slipped 0.1%. Rising oil prices added pressure on Wall Street as Brent crude rose 2.3% to $99.22 a barrel, nearing its highest level in about six weeks.

The sharp increase in oil prices has created fresh inflation worries, with investors concerned that higher energy costs could push inflation higher and affect interest rates. The Federal Reserve's next policy meeting is also in focus, with traders watching closely for clues about what happens to interest rates. Markets are currently pricing in a 60% chance of a 0.25 percentage-point rate hike.

US-Canada trade tensions are another worry for investors as Canada is set to impose retaliatory tariffs on around $20 billion worth of US goods starting Tuesday. President Donald Trump also warned Canadian aircraft maker Bombardier that it would not be able to sell aircraft in the US unless Canada starts making its products in the US.