Stocks Hang On Amid Oil Price Volatility and Inflation Fears

The US stock market experienced a volatile day of trading on Thursday, with stocks barely holding onto their gains despite higher oil prices and growing concerns about inflation. The S&P 500 finished the day nearly flat, while the Dow Jones Industrial Average dropped by 161 points.

High yields in the bond market have been slowing down the overall economy, making it more expensive for companies to borrow money. This has also had a negative impact on stock prices, particularly those seen as overvalued.

The price of Brent crude oil rose by 2.1% to settle at $100.22 per barrel, following a midday drop from $102 to around $99.

Despite the uncertainty surrounding the war with Iran and its impact on global oil supplies, traders remain confident that the US economy can withstand further interest rate hikes by the Federal Reserve. In fact, there's now a better than 50% chance of two more rate increases by the end of the year, according to data from CME Group.

Several major companies reported strong quarterly earnings on Thursday, including Stitch Fix and Darden Restaurants. However, their stocks still took a hit due to concerns about consumer spending and revenue growth.