Oil Prices Soar Amid Ongoing Tensions and Inflation Concerns
U.S. stocks stumbled back into trading on Tuesday after a three-day weekend, weighed down by concerns over inflation and ongoing tensions in the Middle East.
The S&P 500 fell 0.4%, while the Dow Jones Industrial Average dropped 520 points, or 1%, as of 10 a.m. Eastern time, and the Nasdaq composite slipped 0.3% lower.
In the oil market, Brent crude prices rose 1% to $97.95 after briefly climbing as high as $99.46, pushing the global flow of crude higher due to increased fighting in the Middle East.
The higher oil prices have exacerbated worries about inflation, which is expected to accelerate to 5.4% from 4.7% in July when the U.S. government releases its August report on wholesale inflation this Thursday.
Meanwhile, economists anticipate a slight easing of consumer price growth to 3.3% from July's 3.4%, but that remains above the Federal Reserve's target rate of 2%.