Wall Street grows uneasy as oil dip fails to calm inflation fears

Wall Street analysts note that the recent dip in oil prices and a modest rise in the dollar have failed to allay concerns that elevated energy costs will drive inflation higher and force the Federal Reserve to raise rates. The move follows the Trump administration’s decision to tap emergency oil reserves while US-Iran negotiations remain at an impasse. At the same time, U.S. job openings have dropped to a five-month low and layoffs stay modest, while consumer confidence has fallen to its lowest point since 2014, suggesting a “low-hire, low-fire” environment.

Treasury 30-year yields have climbed to their highest level since 2002, and most S&P 500 components posted consecutive declines. The broader market sentiment is now at multi-year lows, with investors awaiting earnings data to gauge whether consumer spending will weaken further.