Oil Prices Surge Past $100, Sinking US Stocks Amid Inflation Fears
US stocks fell sharply on Thursday after hotter-than-expected producer price inflation (PPI) data, which rose 5.4% year-on-year in August, ahead of estimates of 5.3%. The data also showed core PPI, excluding more volatile items such as food and fuel, rose to 4.6% year-on-year.
The sharp increase in oil prices above $100 a barrel has raised concerns about inflationary pressures and the potential for higher interest rates. Expectations for a September rate hike have risen to 70%, up from 60% prior to the reading.
Meta Platforms shares rose 1.4% after JPMorgan upgraded it, citing meaningful upside potential as Meta rolls out its AI models and products. Meanwhile, Macy's posted a Q2 revenue beat but saw falling shares despite lifting full-year guidance for net sales.