Fed Decision Looms as Oil Prices Soar Amid Middle East Tensions

Wall Street stocks suffered losses on Wednesday as investors await the Federal Reserve's decision on interest rates. The S&P 500 sank 0.7%, while the Dow Jones Industrial Average dropped 1.4% to 760 points.

The tech-heavy Nasdaq composite fell 1% as major chipmakers, including Nvidia, Advanced Micro Devices, and Micron Technology, declined sharply. Nvidia's stock plummeted 2.6% after reporting weaker-than-expected earnings.

Oil prices surged 6% to $87.01 per barrel due to increased tensions in the Middle East, with Iran launching a barrage of missiles at American forces in the region.

The price swings have raised concerns about inflation reaccelerating, which could impact the Federal Reserve's decision on interest rates. Traders are currently betting on a 36% probability of a rate hike.