S&P 500 Plunges as Investors Await Fed Rate Hike Decision

The S&P 500 has seen six losing days out of seven, with its latest decline driven by concerns over artificial intelligence and surging oil prices.

This downturn aligns with expectations that the Federal Reserve will raise its benchmark interest rate by 25 basis points during its two-day meeting on Wednesday.

Large corporations typically dislike higher interest rates as they increase borrowing costs and put pressure on consumers buying their products, but experts are divided on how a potential hike will immediately affect the stock market.

'We probably shouldn't expect a large and immediate impact of a rate hike on stocks, since it's already priced in,' said Bill Merz at U.S. Bank Asset Management.

Jean Groen, chief economist at Societe General, took a more pessimistic view: 'I mean, [a hike is] definitely not priced into stocks.'