U.S. stocks slip as oil prices fluctuate amid Iran conflict uncertainty
Major U.S. indexes fell modestly on Tuesday while Brent crude prices rose and fell sharply, reflecting ongoing concerns about oil supply disruptions from the Iran-Israel conflict and upcoming inflation data.
U.S. equity markets edged lower on Tuesday, with the S&P 500 down 0.3%, the Dow Jones Industrial Average down 0.3% and the Nasdaq composite down 0.6%, as investors weighed volatile oil prices and pending inflation figures.
Brent crude briefly rose above $90 a barrel before retreating to $88.91, up 1.4% from the previous day, after the United States and Israel’s February attacks on Iran closed the Strait of Hormuz and tightened global oil supplies.
Higher fuel costs have pushed the average price of regular gasoline to $4.01 per gallon, according to the American Automobile Association, up from less than $3.14 a year earlier.
The market is focused on Wednesday’s release of the U.S. consumer-price index, which economists expect to show a slight slowdown in inflation to 3.4% in July from 3.5% in June. The data could influence the Federal Reserve’s decision on whether to raise its benchmark rate at the September meeting, a move that would be its first in more than three years.
Treasury yields remain elevated, with the 10-year note at 4.69% after easing from 4.72% on Monday, still well above the pre-conflict level of 3.97%.
Corporate earnings continued to beat expectations, helping to support stock valuations. Aramark jumped 8.5% after reporting stronger profit and revenue, while Cardinal Health rose 1.3% on better-than-expected earnings.
Overall, the S&P 500 closed at 7,728.20, the Dow at 53,791.85 and the Nasdaq at 26,445.45. Markets in Europe and Asia posted mixed results, with Hong Kong’s Hang Seng index falling 1.1%.