Oil Surges Past $100 as US Stocks Plummet on Inflation Fears
US stocks took a hit on Thursday as oil prices soared above $100 a barrel, fueling concerns over inflation and increasing expectations of a Federal Reserve interest rate hike next week.
The Dow Jones Industrial Average declined by 400 points, or 0.76%, while the S&P 500 fell 0.65%. The Nasdaq Composite also dropped 0.68%.
US West Texas Intermediate crude closed at $102.95 a barrel, up 7.1%, marking its highest close since May 19. Brent crude futures climbed even higher, trading above $108 a barrel during Thursday's session.
The rise in oil prices pushed the 10-year Treasury yield above 4.945%, its highest level since at least October 2023. Higher yields can put pressure on equity valuations and increase borrowing costs for companies and consumers.