US stocks fall as higher oil price adds to inflation fears

US stocks fall as higher oil price adds to inflation fears

US equities fell on Monday after ending last week with their worst performance since February as an oil price rally heightened concerns about inflation and the future path of interest rates.

Wall Street’s blue-chip S&P 500 index dropped 1.5 per cent during New York morning dealing. The technology-focused Nasdaq Composite, which houses companies whose high valuations can make their share prices more sensitive to anticipated changes in interest rates, fell by 2.4 per cent.

“We’re in an environment that feels like the opposite of Goldilocks,” said Cosimo Marasciulo, head of investment absolute returns at fund manager Amundi, referring to an economic environment where growth is healthy but inflation is contained. “We could be getting upwards pressure on inflation and on interest rates.”

In Europe, the Stoxx 600 index dipped 0.4 per cent at the close of trading following a 2 per cent decline last week. Hong Kong’s Hang Seng index closed the day 2.2 per cent lower.

Those stock market moves came as Brent crude oil jumped 3.1 per cent to a three-year high of $81.74 a barrel as producer group Opec+ stuck to existing output plans at its latest meeting, despite a surge in natural gas prices increasing oil demand. Members had agreed