S&P 500 and NASDAQ Slip as Oil Prices Soar and Inflation Fears Weigh on Global Stocks
Oil jumped after Israel struck Iran’s South Pars gas field and Iran threatened retaliation. Brent crude approached $110 per barrel, while West Texas Intermediate crude rose more than 3% to around $99. A Reuters article noted that during the previous escalation, Brent settled above $100 and WTI neared $96. Higher energy costs feed directly into inflation data.
In addition, the US wholesale prices, which are recorded in the Producer Price Index (PPI), have soared over the past few months, indicating an increase in inflationary pressures. The PPI increased 0.7% in February 2026, compared to an increase of 0.36% in January, marking a significant acceleration in price increases.
This spike is a concerning issue among economists because inflation has been persistent since before the . The rising wholesale prices, which are mainly caused by the rising cost of energy and raw materials, may increase the strain on consumers and businesses, affecting the overall economic growth. The Federal Reserve is now under more pressure to respond to these escalating costs, which could restrict its capacity to boost the economy by reducing interest rates.
The Federal Reserve is widely expected to keep its benchmark rate steady, but Chair Jerome Powell’s comments will be closely watched for clues about how policymakers interpret the inflationary shock. Market participants are weighing whether the energy‑driven price spike is a temporary shock or a more persistent problem that could embed inflation expectations.
Gold, usually a haven, provided mixed signals. During the day, Spot gold fell 2% to $4,903.19 per ounce, its lowest level since February 18. US gold futures for April delivery also dropped 2% to $4,907.40. As the latest conflict intensified, gold rose initially, then slipped as investors preferred cash.
