Stocks Slide Amid Rising Oil Prices and Inflation Concerns
US stocks are experiencing a weak start to September as they returned from a three-day weekend. The S&P 500 fell by 0.4%, while the Dow Jones Industrial Average dropped 517 points, or 1%. This decline is partly due to pressure from rising oil prices.
The price of Brent crude briefly climbed to $99.46 before giving back most of its gain and settling at a 0.1% increase to $97.05.
Higher oil prices have exacerbated concerns about inflation, which remains above the Federal Reserve's target rate of 2%. The upcoming reports on wholesale and consumer inflation will be closely watched, as they are expected to show acceleration in inflation rates.
The Fed is set to meet next week to decide whether to raise or lower interest rates. A 60% probability of a rate hike has been predicted by traders, but the new Fed chairman, Kevin Warsh, has signaled that he wants to provide fewer clues about the central bank's intentions.