SPY is trading 0.9% lower as surging oil prices and geopolitical tensions fuel stagflation concerns ahead of key inflation data.
- Geopolitical escalation around the Strait of Hormuz has driven crude oil prices sharply higher, reinforcing broad risk-off sentiment across global markets.
- A key CPI release due at 8:30 AM EST threatens a hotter core inflation print, which could raise the odds of additional Fed rate hikes.
- Renewed inflation worries are weighing heavily on high-valuation technology shares that dominate the index.