US Stocks Plunge as Oil Prices Soar Amid Middle East Conflict
Oil prices surged on Wednesday, reaching $87.01 per barrel after fighting resumed in the war between Iran and the US, raising concerns about global oil flows.
The jump in oil prices has sparked worries that inflation could reaccelerate, leading traders to be uncertain about what the Federal Reserve will announce regarding interest rates later in the day.
The S&P 500 sank 0.7%, while the Dow Jones Industrial Average was down 760 points, or 1.4%, as of 10:30 a.m. Eastern time, and the Nasdaq composite was 1% lower.
Nvidia, an artificial intelligence-focused chip company, was the heaviest weight on the S&P 500 after it sank 2.6%, while Apple rose 0.3%, helping to limit the US stock market's losses.
The Federal Reserve is expected to raise its main interest rate, with a roughly 36% probability, which would be the first increase in three years.