It’s too soon to tell, but there are alarm bells ringing that indicate investors should be — and are — on edge. Stocks rebounded this year after a bruising 2022, as artificial intelligence excitement led investors to fuel a powerful tech-driven surge. Seemingly abating inflation also raised hopes on Wall Street that the Federal Reserve would soon curb its interest rate hiking cycle, helping equities edge higher. Now, markets aren’t looking so picturesque.
Oil prices have rallied this summer, as several output cuts announced by OPEC+ have started to take hold on markets. US crude prices on Wednesday climbed to their highest level since last year, when Russia’s invasion of Ukraine sparked fears about a supply constraint and sent oil prices skyrocketing. While prices dipped on Thursday, they remain elevated and within striking distance of $100 a barrel.