Soaring energy prices spark anxiety in global markets

U.S. stocks opened broadly lower on Wednesday, with the S&P 500 down 0.9 percent. On Tuesday, the index rose 1.1%, recouping some of the losses from the tech-fueled firesell earlier in the week. The tech-heavy Nasdaq Composite fell 1%, while the Dow Jones Industrial Average fell 0.7%. Investors appear to be bracing for higher inflation triggered by a surge in energy markets.

Investors were already concerns that the Federal Reserve could scale back its pandemic-era stimulus, and the surge in energy prices added new level of uncertainty. Analyst says higher oil and gas prices threaten to fuel inflation, disrupt supply chains and weigh on the global economy’s recovers. In addition, rising energy prices have raised concerns about rising costs for consumers and businesses. The yield on the 10-year U.S. Treasury Rate rose above 1.55% on Wednesday after topping 1.56% last week. Oil prices hit their highest levels since 2014 this week, with WTI near $80 a barrel.

CNBC's Jim Cramer said he viewed the Wall Street rally overnight as a "quick rally" and encouraged investors to be patient before buying stocks. "Strictly speaking, it's been a quick rally. It's hard to sustain these moves because there's still a lot of investors want to get out. If the stock market goes higher, investors will flock out."

Investors are also watching Washington's progress on the debt ceiling. U.S. Treasury Secretary Janet Yellen said on Tuesday that the U.S. will slip into recession if Congress fails to raise the debt ceiling by the Oct 18 deadline.