U.S. shares drop as soaring oil prices stir inflation woes; Yen wilts

  • U.S. stocks fall as surging oil stokes inflation risk
  • Dollar reaches highest on yen since late 2018
  • Angst about Chinese property developer Evergrande could keep Asia on edge

NEW YORK, Oct 11 (Reuters) – U.S. shares fell on Monday, having whip-sawed between gains and losses as soaring oil prices that hit multi-year peaks stoked fears about rising prices and tighter monetary policy, lifting the dollar to a near-three-year high against the yen.

A rally in basic material and energy shares on higher oil prices initially lifted major U.S. stock indices. But the gains faded as investors focused on the start of the U.S. corporate earnings season next week.

Some analysts anticipate businesses reporting slowing growth due to supply-chain snags and rising prices. read more They warned that this could lead to a drop in U.S. stocks.

“Whether the final chapter of the mid-cycle transition ends with a 10% or 20% correction in the S&P 500 will be determined by how much…

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