ASX 200 Dives as US Fed Hawks and Oil Prices Soar

Australia's benchmark stock index fell sharply on Thursday after a hawkish Federal Reserve statement and a rebound in oil prices weighed on investor sentiment.

The S&P/ASX 200 declined by 0.83% to trade at 8,963.7 points by early afternoon in Sydney, snapping a recent winning streak.

The decline was largely attributed to the Federal Reserve's decision to hold interest rates steady but adopt a hawkish tone in its accompanying statement, tempering market expectations for near-term rate cuts.

Australia's inflation data also added complexity to Thursday's trading, with persistent price pressures remaining a central concern despite the Reserve Bank of Australia having raised interest rates at each of its first three meetings this year.