U.S. stocks were sinking Wednesday with oil prices raising worries about inflation, the Associated Press reports.
The S&P 500 fell 0.5% and was on track for its first loss this week. The Dow Jones Industrial Average was down 0.8%, and the Nasdaq composite was 0.5% lower.
Stocks fell under the pressure of a 6.2% climb for the price of a barrel of Brent crude, the international standard, to $109.84. Benchmark U.S. oil rose 2.3% to $97.70 per barrel.
Oil and natural gas prices have been spiking since the war with Iran began due to disruptions of the Persian Gulf’s energy industry. If the disruptions keep oil and gas prices high for long, they could send a debilitating wave of inflation crashing into the global economy.
On Wall Street, Macy’s jumped 4.4% after reporting stronger profit and revenue for the latest quarter than analysts expected.
General Mills slipped 1.5% after the company behind the Pillsbury, Progresso and Wheaties brands reported a weaker profit for the latest quarter than analysts expected.
In the bond market, Treasury yields ticked higher following the higher-than-expected update on inflation at the wholesale level. The yield on the 10-year Treasury rose to 4.22% from 4.20% late Tuesday and from just 3.97% before the war with Iran started.
