Oil Rally Leaves Wall Street Split as Fed Tightening Debate Builds

Wall Street ended Monday mixed as rising energy shares offset losses in technology. The Dow Jones Industrial Average gained 0.4% to 51,850.55, while the Nasdaq Composite fell 0.4% to 27,245.9 and the S&P 500 slipped 0.1% to 7,807.24.

Brent crude futures climbed $1.93 to settle at $106.65 a barrel, their highest close since Sept. 15. West Texas Intermediate rose $1.89 to $93.74. Attacks in Saudi Arabia heightened concern about regional energy supplies and added to worries about inflation and companies’ costs.

Saudi authorities said one person was killed and 11 injured when a projectile struck a terminal at Riyadh’s international airport on Sunday. The incident followed a Houthi-claimed attack a day earlier that killed 13 people and wounded more than 300. ConocoPhillips gained 2.6%, and ExxonMobil rose 1.9%.

Cleveland Fed President Beth Hammack said the central bank should move relatively quickly toward tighter monetary policy. She estimated underlying inflation was in the mid-to-high 2% range and said she expected a gradual return to the Fed’s 2% target.

Traders raised the probability of an October rate hike to nearly 22%, from 17.7% on Friday, according to CME’s FedWatch tool. No economic data was released Monday.