Oil Surge Sends Stocks Plummeting, Energy Firms Buck Trend
Stocks plummeted across the board on Wednesday as oil prices surged past $100 a barrel for the first time since July. The S&P 500 fell 37.16 points, or 0.5%, to 7,636.36, while the Dow Jones Industrial Average dropped 405.41 points, or 0.8%, to 52,380.66.
The price of Brent crude jumped 3.4% in response to ongoing tensions between the US and Iran. Energy stocks were among the few winners, with Exxon Mobil rising 2.2% and Chevron increasing by 1.9%. In contrast, retailers led the market lower, with Amazon falling 1.8% and Starbucks declining 1.9%.
The surge in oil prices has contributed to already high inflation, with gasoline prices in the US up about 32% from a year ago to $4.22 per gallon. This increase has a direct impact on household budgets, as well as indirect effects on prices for goods due to higher shipping costs.