US Stock Market: Wall Street divided on Fed as rising crude prices boost rate hike expectations

Wall Street brokerages remain divided on the Federal Reserve's next move as Brent crude climbing to $100 per barrel has intensified inflation concerns and raised expectations of a surprise rate hike. Traders now price in around a 32% probability of a rate hike at this week's Fed meeting, up from about 10% two weeks ago, with BofA expecting three hikes from September and Deutsche Bank forecasting two. The combination of elevated oil prices, persistent inflation pressures, and limited forward guidance from Fed Chair Kevin Warsh has made the July meeting a close call.