Wall Street Falls as Oil Prices Surge to Highest Mark Since May

The Australian stock market is expected to fall for another day, following losses on Wall Street. The S&P 500 declined 0.6% and the Dow Jones Industrial Average dropped 316 points or 0.6%. Oil prices have surged to their highest level since May, reaching $US107.63 per barrel for Brent crude.

The jump in oil prices has contributed to rising concerns about inflation and increased pressure on the bond market, leading to a decline in stocks. The US job market appears solid, with fewer workers applying for unemployment benefits last week, which may give the Federal Reserve more confidence that the economy can withstand higher interest rates.

There is a 73% chance of the Fed raising its main interest rate at its meeting next week, according to data from CME Group. The European Central Bank has also raised its interest rates in hopes of controlling inflation. Higher yields on bonds have made investors less willing to pay high prices for stocks and other riskier investments.