Wall Street slides lower amid rising oil prices

US stocks are falling as Wall Street waits for updates on the economy and major tech firms. At lunchtime, the S&P 500 was down 0.5%, while the Dow Jones Industrial Average was down 51 points, or 0.1%, to 34,612.

After largely declining for a year, oil prices have begun rising since the end of June. Recently, stocks have been swinging back and forth as investors wonder if the Federal Reserve would continue raising interest rates indefinitely.


By slowing the overall economy and lowering the cost of stocks and other assets, high rates help to combat inflation. Recent positive economic figures have dispelled concerns about a harsh recession, contrary to long-held projections. They might also be aggravating inflationary pressures, which might encourage the Fed to maintain higher rates for a longer period of time.

According to a Bank of America poll, professional fund managers are investing more in equities than they have in the previous 17 months, which has caused them to feel less gloomy about stocks internationally. According to a BofA Global Research analysis by investment strategists led by Michael Hartnett, 60% of fund managers believe the Fed has stopped raising interest rates. This week’s findings could influence the Fed’s decision-making.

The most recent monthly report on prices American consumers are paying will be released on Wednesday. According to experts, prices were generally 3.6% higher last month than they were a year ago. Since reaching a peak of over 9% last summer, inflation has largely been declining, but experts caution that the final improvement may be the most challenging to achieve.

Tech stocks were under pressure from software major Oracle after it reported latest quarter revenue that was barely over analysts’ expectations. In advance of revealing its newest phone models, Apple was down 1.6%. As a federal court antitrust trial against Google gets underway, Alphabet’s share price fell by 0.8%.

Stocks of oil companies soared along with the price of petroleum, putting them on Wall Street’s winning side. Exxon Mobil saw a 2.7% increase and was one of the main factors driving the S&P 500 higher. The likelihood of interest rate reductions occurring in the coming year has also been tempered by traders.