Bulls & Bears: Oil Shock and Inflation Data Send Markets Reeling Ahead of Fed Decision

Markets are oversold and ready to bounce. After three straight days of declines, the S&P 500 sits at 7,636—down just 0.5% from its peak—with energy stocks leading the charge as crude oil tops $100 a barrel. The forced-selling risk that Bank of America flagged is a paper tiger: systematic funds have only $9 billion of buying capacity left, but the $163 billion downside scenario requires a market drop that seems overblown. As long as oil holds above $100, energy sector...