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Oil Soars as Fed Sees Stickier Inflation, Leaving U.S. Stocks Mixed

The Fed’s latest inflation view points to more pressure on prices that could weigh on riskier shares.

Overview

  • U.S. stocks were mixed in late trading as crude jumped about 6.6% to $89.39, with energy shares leading gains and the S&P 500 slipping roughly 0.3%.
  • An updated April inflation forecast from the Federal Reserve signaled firmer price pressures, which market watchers said darkens the near-term outlook for equities.
  • The March Consumer Price Index showed 3.3% inflation over the past year, up 0.9 percentage points from February, with higher energy costs doing much of the lifting.
  • Coverage tied the oil spike to a supply shock from the Iran conflict, with reports saying Iran has effectively closed the Strait of Hormuz, a key route for about 20 million barrels of oil per day.
  • Earnings drove sharp single‑stock moves, including Cleveland-Cliffs dropping more than 6% after a slight per‑share loss miss and Investar rising over 5% after an adjusted EPS beat.