US Stocks Sink Amid Fed Anticipation, Oil Prices Soar on Iran Tensions

The US stock market traded in negative territory on Wednesday as investors awaited the outcome of the Federal Reserve's latest policy meeting on interest rates.

The S&P 500 edged down 0.73%, while the Dow Jones Industrial Average lost over 700 points, or 1.42%. The Nasdaq Composite also dropped 1.05%.

The biggest moves were seen in the energy market, with Brent crude surging 5.6% to $86.64 a barrel after fresh hostilities involving Iran heightened concerns over global oil supplies.

Oil prices have been highly volatile in recent weeks, and the renewed rise has fuelled concerns that inflation could accelerate again after showing signs of easing faster than expected.