Oil prices rose higher on Wednesday, while struggling technology stocks dragged Wall Street lower ahead of a Federal Reserve decision on what to do with interest rates, according to a report by the Associated Press.
The S&P 500 fell 0.9%, the Dow Jones Industrial Average was down 825 points, or 1.6%, as of 10:45 a.m. Central time, and the Nasdaq composite was 1.2% lower.
In the oil market, the price of Brent crude rose 6.7% to $87.60 per barrel after fighting resumed in the war with Iran, raising concern about the flow of oil through the Strait of Hormuz.
The price swings have reignited concern that inflation will reaccelerate. On Wednesday, the Federal Reserve voted 10-3 to keep interest rates the same, though pressure has been building to address inflation more directly. The Fed is maintaining the range for rates at 3.5 percent to 3.75 percent.
“Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East,” the Fed said in a press release. “Productivity growth and capital investment are strong. Job gains have kept pace with the workforce, and the unemployment rate has changed little.”
