World shares are mixed and Brent crude is higher after worries over stagflation pull US stocks lower

On Monday, U.S. stocks dipped from their record highs as rising oil prices added pressure to inflation and financial markets. The S&P 500 fell 0.5%, while the Dow Jones Industrial Average dropped 272 points, and the Nasdaq composite slipped 0.3%. Oil prices surged 2.7% to $90.87 per barrel due to uncertainty surrounding the Iran conflict and its impact on global oil supply.

This led to higher Treasury yields, exacerbating inflation concerns and potentially prompting the Federal Reserve to raise interest rates, which could slow economic growth. Mortgage rates also reached near their highest level in a year. Despite high inflation, U.S. companies have seen strong earnings growth, with the S&P 500 on track for a 50% earnings per share increase in the spring.

However, consumer spending and retail sales have been impacted by rising costs and job losses. On Monday, trading was relatively calm, with notable declines in L3Harris Technologies and Alphabet, but gains in Berkshire Hathaway, which increased its investment in Google. Abroad, foreign stock indexes dipped following stronger performances in Asia, including a 0.7% rise in Japan's Nikkei 225 and gains of 1.3% in Hong Kong and 1.4% in Shanghai.