US Stocks Close Lower for Second Day as Oil Prices Stay Elevated

The S&P 500 fell for a second straight session as rising oil prices fueled by Middle East tensions added to inflation concerns. According to Sina Finance, Brent crude futures rose for a third consecutive day and approached a seven-week high. The article said the United States struck an oil export hub on Iran's Kharg Island and tankers near the port city of Jask. It also said Iran's Revolutionary Guards warned tanker crews near Kuwait and Bahrain to abandon ship because they would be targets. Chris Larkin of Morgan Stanley's E*Trade said investors may find it difficult to shift attention away from inflation as geopolitical tensions push oil prices higher. The article added that Friday's U.S. CPI data could be a key factor in deciding whether the Federal Reserve raises rates this month, while swaps market pricing showed nearly a 60% chance of a rate hike next week. The Philadelphia Semiconductor Index rose for a fourth day. Intel jumped more than 9% after DigiTimes reported that the company may raise CPU prices, while Qualcomm gained more than 3% after winning an Amazon AI chip order and saying it will provide custom chips. At the close in New York, the S&P 500 fell 0.58% to 7,673.52. The Dow Jones Industrial Average dropped 1.18% to 52,786.07, the Nasdaq Composite lost 0.32% to 26,421.41, the Nasdaq 100 fell 0.12% to 29,507.7, and the Russell 2000 declined 0.52% to 2,960.204.