US Stocks Plummet as Oil Prices Soar Amid Middle Eastern Violence
The US stock market is experiencing a mixed day ahead of the Federal Reserve's decision on interest rates, while oil prices surge due to escalating violence in the Middle East. The S&P 500 fell 0.4%, with the Dow Jones Industrial Average down 614 points, or 1.2%, and the Nasdaq composite 0.5% lower as of 10 a.m. Eastern time.
Oil prices jumped 6.2% to $87.14 per barrel after Iran launched a barrage of missiles at American forces in the Middle East, raising concerns about global oil flow. The price swings have raised worries that inflation will reaccelerate, leading traders to be uncertain about what the Federal Reserve will announce.
The Fed's two-day meeting on interest rates concludes later today, and traders are betting on a roughly 36% probability of a rate hike, which would be the first increase in three years. Higher rates can keep inflation under control but also slow the economy and undercut prices for stocks and other investments.