US Stocks Slide Amid Rising Oil Prices and Inflation Worries
US stocks fell on Tuesday as investors returned to trading after a three-day weekend. The S&P 500 dropped 0.4%, while the Dow Jones Industrial Average declined 517 points, or 1%. The Nasdaq composite was down 0.2%.
The decline in US stocks comes amid rising oil prices, with Brent crude briefly reaching $99.46 per barrel before falling to $97.05. Oil has increased from around $72 since early July due to decreased global supply caused by fighting in the Middle East.
Higher oil prices have contributed to concerns about inflation, which is a key issue for investors and policymakers. The US government will release its August report on wholesale inflation this Thursday, with economists expecting it to rise to 5.4% from 4.7% in July.
The more closely watched consumer price index (CPI) report will be released on Friday, showing the rate of inflation experienced by US consumers. Economists anticipate a slight decrease to 3.3% from July's 3.4%, but this remains above the Federal Reserve's 2% target for inflation.