Fed funds futures now reflect roughly an 82% probability of a Federal Reserve interest rate hike in September, up from below 53% a week ago. Brent crude, the global benchmark, hit $100 a barrel on Thursday for the first time since late May, while the average price of gasoline in the United States rose to $4 per gallon, its highest level in over a month. Weekly jobless claims fell to 187,000 for the week ended July 18, their lowest level since 1969, strengthening the view that the Fed can prioritize fighting inflation. The Dow Jones Industrial Average tumbled roughly 500 points and the Nasdaq Composite lost more than 2% in what analysts describe as a perfect storm for equity markets.
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