**Wall Street Faces Rough Start Amid Inflation and Interest-Rate Concerns**

Wall Street experienced a tumultuous start this week as investors battled with escalating inflation worries, fluctuating interest-rate expectations, and persistent unrest in the Middle East. By midday Monday, the Dow Jones Industrial Average had slipped 315 points, or 0.7%, while the S&P 500 and Nasdaq Composite both fell by 0.5%. Small-cap stocks also took a hit, with the Russell 1000 down 0.5% and the Russell 2000 dropping 0.8%.

In a curious shift, traders showed a preference for larger companies over smaller ones, yet they continued to venture into riskier investments. This was evident as the Invesco S&P 500 Low Volatility ETF declined by 0.8%, in contrast to the Invesco S&P 500 High Beta ETF, which remained unchanged.

One bright spot in the market was the energy sector within the S&P 500, which rose by 0.7%. This surge aligned with a significant increase in WTI crude oil prices, up 3.5%, reaching $77. Concerns about ongoing conflict in the Middle East are expected to maintain upward pressure on oil prices.

In contrast to the U.S., international markets fared relatively better. The STOXX Europe 600 Index edged up by 0.2%, and Hong Kong's Hang Seng Index saw a more substantial gain of 1.6%. Additionally, the iShares MSCI Emerging Markets ETF increased by 0.6%, signifying a growing interest in global assets over U.S. stocks.

Overall, the day's market movements suggest a shift in sentiment, with investors appearing to pivot away from U.S. equities towards more volatile options, at least for the time being.