Oil Prices Surge, Trade Tensions Weigh on US Stocks

US stocks took a hit on Tuesday, September 8, as investors returned from the Labor Day holiday to a shortened trading week. The Dow Jones Industrial Average fell 511 points, or 0.7%, while the S&P 500 declined by 0.2%. The tech-heavy Nasdaq Composite slipped 0.1%.

The surge in oil prices was one of the main concerns for investors. Brent crude futures rose 2.3% to $99.22 a barrel, while US West Texas Intermediate crude gained 3.3% to $94.54. The increase in energy costs has raised concerns over inflation and the Federal Reserve's interest-rate path.

The US-Canada trade tensions also weighed on investor sentiment. Ottawa imposed tariffs of up to 50% on certain US goods, covering around $20 billion of products, including dairy, steel, and wood.