Oil Prices Weigh on US Stocks as Inflation Concerns Linger

US stocks drifted lower on their return to trading after a three-day weekend.

The S&P 500 fell 0.4%, while the Dow Jones Industrial Average dropped 517 points, or 1% as of 2 p.m. Eastern time.

The decline was partly driven by rising oil prices, with Brent crude briefly reaching $99.46 before giving back most of its gain and settling at $97.05.

Experts predict that the upcoming inflation reports will show an acceleration to 5.4% from 4.7% in July's wholesale inflation rate, which could lead to a Federal Reserve interest rate hike.