Fed hike odds rise as oil prices climb

Investors are increasingly pricing in a possible Federal Reserve rate hike in September as oil prices move higher and recent labor data points to continued economic strength. Fed funds futures now show a much higher chance of a quarterpoint increase than a week ago, while the central bank is still expected to leave rates unchanged at its meeting next week. Traders are watching the oil market closely after Brent crude briefly reached $100 a barrel, a move that could add pressure to inflation. A sharperthanexpected drop in weekly jobless claims also supported the view that the Fed may have room to focus more on inflation than on weakening demand. The shift in rate expectations helped weigh on U.S. stocks, especially technology shares, as investors reassessed the outlook for borrowing costs.