US stock market today: US equities traded in negative on Wednesday as investors awaited the outcome of the Federal Reserve’s latest policy meeting on interest rates. Meanwhile, oil prices climbed sharply.S&P 500 edged down 0.73%. The Dow Jones Industrial Average lost over 700 points, or 1.42%, while the Nasdaq Composite managed a also dropped 1.05%The biggest moves were seen in the energy market. Brent crude surged 5.6% to $86.64 a barrel after fresh hostilities involving Iran heightened concerns over global oil supplies. Iran launched a missile attack on US forces in the Middle East, while US forces, alongside Saudi Arabia, carried out strikes on Iran-backed militias in Iraq.Oil prices have been highly volatile in recent weeks. Brent crude had fallen to around $72 a barrel earlier this month before briefly touching $102 last week as uncertainty persisted over whether Washington and Tehran could reach an agreement that would allow oil shipments from the Middle East to resume without disruption.The renewed rise in crude prices has fuelled concerns that inflation could accelerate again after showing signs of easing faster than expected. That uncertainty has also complicated expectations ahead of the Federal Reserve’s interest rate decision following the conclusion of its two-day policy meeting, according to an AP report.Markets are currently assigning about a 36% probability to a US rate hike, which, if delivered, would mark the first increase in three years. While higher interest rates help curb inflation, they can also dampen economic activity and weigh on equity valuations.Technology stocks, particularly companies viewed as richly valued, remain under pressure. Investors have become increasingly cautious about semiconductor manufacturers and other beneficiaries of the artificial intelligence boom, amid concerns that the rapid pace of earnings growth may not be sustainable if AI fails to deliver the expected gains in profitability and productivity.The shift in sentiment was especially evident in South Korea, where the stock market is heavily influenced by Samsung Electronics and SK Hynix. The KOSPI index fell another 6% after plunging 10.8% in the previous session, reducing its gains for the year to 34.4%.SK Hynix shares dropped 9.6%. Although the company reported record quarterly revenue and profit driven by strong AI-related demand, its 257% revenue growth still failed to meet analysts’ expectations.Elsewhere, global markets presented a mixed picture. Hong Kong’s Hang Seng index advanced 2%, while France’s CAC 40 declined 0.7%.In the bond market, US Treasury yields moved slightly higher alongside rising oil prices. The yield on the benchmark 10-year Treasury note inched up to 4.62% from 4.61% at Tuesday’s close.
