US equities edged lower in early trade on Wednesday as a fresh surge in crude oil prices reignited worries about inflation and dampened investor sentiment ahead of the Federal Reserve’s policy decision.The S&P 500 fell 0.3 per cent and was on course for its first decline this week. The Dow Jones Industrial Average dropped 180 points, or 0.4 per cent, while the Nasdaq Composite also slipped 0.3 per cent in morning trade, AP reported.Markets came under pressure after benchmark US crude prices rose 2.2 per cent to $97.69 a barrel. Brent crude, the global benchmark, jumped 4.2 per cent to $107.69 per barrel. Energy prices have been volatile since the outbreak of the Iran conflict, amid disruptions to production and transportation across the Persian Gulf.Concerns intensified after Qatar blamed Israel for an attack on an offshore natural gas field jointly operated with Iran. Prolonged supply disruptions, analysts warn, could push global inflation sharply higher and weigh on economic growth.Adding to inflationary worries, data released on Wednesday showed wholesale prices in the United States accelerated unexpectedly to 3.4 per cent last month. The increase suggests producers may pass on higher costs to households in the coming months.The inflation print reinforced expectations that the Federal Reserve will keep interest rates unchanged at the conclusion of its policy meeting later in the day. While rate cuts could support the job market and financial assets, they also risk stoking inflation — a point that has remained central to the ongoing policy debate. US President Donald Trump has repeatedly called for lower borrowing costs.Investors will also watch whether Fed officials continue to project the possibility of a rate cut during 2026. The outlook remains uncertain, particularly as the geopolitical situation complicates economic forecasts. Rising fuel prices are already beginning to feed into consumer costs, with average gasoline prices climbing to $3.84 per gallon after remaining below $3 just a month ago.Global energy flows continue to face constraints, even as there are tentative hopes that more vessels could eventually pass through the Strait of Hormuz — a key shipping route for about one-fifth of the world’s crude oil.Corporate earnings updates offered mixed cues. Macy’s rose 4.7 per cent after reporting better-than-expected quarterly profit and revenue, while General Mills slipped 1.6 per cent following weaker earnings.In the bond market, Treasury yields edged higher after the inflation data. The yield on the 10-year US Treasury note rose to 4.22 per cent from 4.20 per cent in the previous session.Overseas markets presented a mixed picture. European indices were largely subdued after reacting to rising crude prices, while Asian markets ended higher, with Japan’s Nikkei 225 gaining 2.9 per cent and South Korea’s Kospi jumping 5 per cent.US equities edged lower in early trade on Wednesday as a fresh surge in crude oil prices reignited worries about inflation and dampened investor sentiment ahead of the Federal Reserve’s policy decision.The S&P 500 fell 0.3 per cent and was on course for its first decline this week. The Dow Jones Industrial Average dropped 180 points, or 0.4 per cent, while the Nasdaq Composite also slipped 0.3 per cent in morning trade, AP reported.Markets came under pressure after benchmark US crude prices rose 2.2 per cent to $97.69 a barrel. Brent crude, the global benchmark, jumped 4.2 per cent to $107.69 per barrel. Energy prices have been volatile since the outbreak of the Iran conflict, amid disruptions to production and transportation across the Persian Gulf.Concerns intensified after Qatar blamed Israel for an attack on an offshore natural gas field jointly operated with Iran. Prolonged supply disruptions, analysts warn, could push global inflation sharply higher and weigh on economic growth.Adding to inflationary worries, data released on Wednesday showed wholesale prices in the United States accelerated unexpectedly to 3.4 per cent last month. The increase suggests producers may pass on higher costs to households in the coming months.The inflation print reinforced expectations that the Federal Reserve will keep interest rates unchanged at the conclusion of its policy meeting later in the day. While rate cuts could support the job market and financial assets, they also risk stoking inflation — a point that has remained central to the ongoing policy debate. US President Donald Trump has repeatedly called for lower borrowing costs.Investors will also watch whether Fed officials continue to project the possibility of a rate cut during 2026. The outlook remains uncertain, particularly as the geopolitical situation complicates economic forecasts. Rising fuel prices are already beginning to feed into consumer costs, with average gasoline prices climbing to $3.84 per gallon after remaining below $3 just a month ago.Global energy flows continue to face constraints, even as there are tentative hopes that more vessels could eventually pass through the Strait of Hormuz — a key shipping route for about one-fifth of the world’s crude oil.Corporate earnings updates offered mixed cues. Macy’s rose 4.7 per cent after reporting better-than-expected quarterly profit and revenue, while General Mills slipped 1.6 per cent following weaker earnings.In the bond market, Treasury yields edged higher after the inflation data. The yield on the 10-year US Treasury note rose to 4.22 per cent from 4.20 per cent in the previous session.Overseas markets presented a mixed picture. European indices were largely subdued after reacting to rising crude prices, while Asian markets ended higher, with Japan’s Nikkei 225 gaining 2.9 per cent and South Korea’s Kospi jumping 5 per cent.US equities edged lower in early trade on Wednesday as a fresh surge in crude oil prices reignited worries about inflation and dampened investor sentiment ahead of the Federal Reserve’s policy decision.The S&P 500 fell 0.3 per cent and was on course for its first decline this week. The Dow Jones Industrial Average dropped 180 points, or 0.4 per cent, while the Nasdaq Composite also slipped 0.3 per cent in morning trade, AP reported.Markets came under pressure after benchmark US crude prices rose 2.2 per cent to $97.69 a barrel. Brent crude, the global benchmark, jumped 4.2 per cent to $107.69 per barrel. Energy prices have been volatile since the outbreak of the Iran conflict, amid disruptions to production and transportation across the Persian Gulf.Concerns intensified after Qatar blamed Israel for an attack on an offshore natural gas field jointly operated with Iran. Prolonged supply disruptions, analysts warn, could push global inflation sharply higher and weigh on economic growth.Adding to inflationary worries, data released on Wednesday showed wholesale prices in the United States accelerated unexpectedly to 3.4 per cent last month. The increase suggests producers may pass on higher costs to households in the coming months.The inflation print reinforced expectations that the Federal Reserve will keep interest rates unchanged at the conclusion of its policy meeting later in the day. While rate cuts could support the job market and financial assets, they also risk stoking inflation — a point that has remained central to the ongoing policy debate. US President Donald Trump has repeatedly called for lower borrowing costs.Investors will also watch whether Fed officials continue to project the possibility of a rate cut during 2026. The outlook remains uncertain, particularly as the geopolitical situation complicates economic forecasts. Rising fuel prices are already beginning to feed into consumer costs, with average gasoline prices climbing to $3.84 per gallon after remaining below $3 just a month ago.Global energy flows continue to face constraints, even as there are tentative hopes that more vessels could eventually pass through the Strait of Hormuz — a key shipping route for about one-fifth of the world’s crude oil.Corporate earnings updates offered mixed cues. Macy’s rose 4.7 per cent after reporting better-than-expected quarterly profit and revenue, while General Mills slipped 1.6 per cent following weaker earnings.In the bond market, Treasury yields edged higher after the inflation data. The yield on the 10-year US Treasury note rose to 4.22 per cent from 4.20 per cent in the previous session.Overseas markets presented a mixed picture. European indices were largely subdued after reacting to rising crude prices, while Asian markets ended higher, with Japan’s Nikkei 225 gaining 2.9 per cent and South Korea’s Kospi jumping 5 per cent.
