US Stocks Slip from Records as Oil Prices Continue to Swing
US stocks slipped further from their records on Tuesday, as oil prices continued to swing due to uncertainty over the flow of crude after the Iran conflict. The S&P 500 fell 0.4%, while the Dow Jones Industrial Average dropped 170 points, or 0.3%. The Nasdaq composite declined by 0.7%.
The price of Brent crude briefly rose above $90 in the morning before falling back below $87. It settled at $88.91, up 1.4% from Monday's close. Higher oil prices have contributed to higher inflation, with gasoline averaging $4.01 per gallon, up from less than $3.14 a year ago.
The Federal Reserve will release the latest monthly reading on inflation on Wednesday, which is expected to show a deceleration in price growth. Economists predict that inflation will be 3.4% in July, down from 3.5% in June.