LIVE MARKETS-US stocks take a dive as skyrocketing oil prices ignite global inflation fears

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US STOCKS TAKE A DIVE AS SKYROCKETING OIL PRICES IGNITE GLOBAL INFLATION FEARS

Wall Street headed south right out of the gate on Tuesday, with the major U.S. stock indexes following their global counterparts sharply lower as the U.S.-Israel war against Iran entered its fourth day, sending crude prices CLc1, LCOc1 soaring over 8%.

The selloff is broad and deep, hitting materials .SPLRCM, chips .SOX, airlines .SPCOMAIR and small-caps .RUT particularly hard.

There seemed to be nowhere to hide. Gold prices are sliding. Each of the Magnificent Seven, the group of AI-related megacaps, is red. Value .IVX and growth .IGX are both negative.

Brent crude LCOc1, in fact, shot to a 19-month high as Iran struck energy infrastructure in the region and targeted tankers in the crucial Strait of Hormuz, through which one fifth of the world's oil and liquefied natural gas flows.

That has given fresh urgency to inflation fears, as oil prices affect many sectors, directly or indirectly.

In turn, those inflation jitters are affecting bets on the timing and extent of rate cuts from the U.S. Federal Reserve. Financial markets are pricing in a near-certain 97.3% likelihood that the central bank will leave its key Fed funds target rate unchanged at the conclusion of its policy meeting later this month.

Here's the extent of the damage as of 09:55 ET:

(Stephen Culp)

EARLIER ON LIVE MARKETS:

S&P 500 ENERGY SECTOR EYES RECORD WEEKLY WIN STREAK AS MIDDLE EAST RISKS MOUNT CLICK HERE

THE EUROPEAN SECTORS WITH THE BIGGEST MIDDLE EAST EXPOSURE CLICK HERE

THE CASE FOR SHORT-LIVED TURMOIL CLICK HERE

EUROPEAN STOCKS BATTERED AS SPECTRE OF INFLATION RETURNS CLICK HERE

EUROPE BEFORE THE BELL: FUTURES SLIDE FURTHER CLICK HERE

TRUMP'S 'WHATEVER IT TAKES' VOW DEEPENS STOCK SELLOFF, LIFTS OIL CLICK HERE