Oil Prices Soar Amidst Global Tensions as Tech Stocks Drag Wall Street Lower

The stock market took a hit on Wednesday as technology stocks plummeted amidst uncertainty about the Federal Reserve's interest rate decision. The Dow Jones Industrial Average dropped 1,153 points, or 2.2%, and the Nasdaq composite slumped 9.8% below its record set last month.

Brent crude oil prices surged 7.3% to settle at $88.09 per barrel after fighting resumed in the war with Iran and raised worries about the global flow of oil. The price had swung as low as $72 early this month and as high as $102 last week due to uncertainty about a deal between the US and Iran.

The Federal Reserve voted to keep the federal funds rate steady, but three members of the policymaking committee wanted to raise rates. Fed Chairman Kevin Warsh implied that the bond market may already be doing some of the work to restrain inflation, citing how yields have climbed since the central bank's last meeting six weeks ago.

The uncertainty surrounding interest rates and oil prices sent Treasury yields up and down following the Fed's decision. The 10-year Treasury yield jumped to 4.68% from 4.61% late Tuesday, while the two-year Treasury yield fell to 4.24% from 4.26%. Higher rates particularly hurt stocks seen as expensive, including those in AI technology.