Wall Street Mixed While Oil Prices Keep Rising/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks traded mixed Wednesday as investors waited for the Federal Reserve’s latest interest rate decision. Oil prices continued climbing sharply due to the Iran conflict, increasing inflation concerns across global markets. Strong earnings from companies like Visa and Starbucks helped support Wall Street despite energy and rate worries.
US Stocks Oil Prices Quick Looks
- S&P 500 remained nearly unchanged in morning trading
- Dow Jones Industrial Average fell 222 points
- Nasdaq gained 0.2% as some AI stocks recovered
- Oil prices surged higher due to the ongoing Iran conflict
- Brent crude approached $117 per barrel
- Investors widely expect the Federal Reserve to keep rates unchanged
- Visa and Starbucks posted stronger-than-expected earnings
- Markets are watching Jerome Powell’s comments closely
Deep Look
Wall Street Waits for Federal Reserve Decision
NEW YORK — U.S. stocks traded in mixed fashion Wednesday as investors closely watched the Federal Reserve ahead of its highly anticipated interest rate announcement later in the day.
The S&P 500 was nearly flat in morning trading after slipping from its record high a day earlier. The Dow Jones Industrial Average fell 222 points, or 0.5%, while the Nasdaq composite rose 0.2% as technology shares showed some stability.
The market remains caught between strong corporate earnings and rising concerns over inflation fueled by sharply higher oil prices linked to the ongoing war with Iran.
Most investors expect the Federal Reserve to leave interest rates unchanged, but attention remains focused on what Fed Chair Jerome Powell may signal about future policy moves.
Oil Prices Continue to Climb
The strongest market reaction tied to the Iran conflict remains in the oil market, where prices have climbed rapidly.
Brent crude for June delivery rose another 5% to $116.77 per barrel, while July Brent crude climbed 4.6% to $109.21.
Oil prices are now approaching their highest levels since the conflict began, when Brent briefly moved above $119 per barrel. Before the war, prices were closer to $70 per barrel.
Although a ceasefire remains in place between the United States and Iran, tensions remain high due to Iran’s closure of the Strait of Hormuz and a U.S. blockade of Iranian ships.
These disruptions continue to threaten global energy supply and keep fuel costs elevated worldwide.
High Oil Prices Raise Inflation Fears
Expensive oil remains one of the biggest reasons Wall Street expects the Federal Reserve to avoid cutting interest rates.
Lower interest rates typically help consumers and businesses by reducing borrowing costs for mortgages, car loans, and business financing.
However, if inflation is rising again, cutting rates too quickly could make price pressures worse.
The Iran conflict has pushed gasoline prices higher, adding fresh inflation risks at a time when the Fed is still trying to maintain stability.
The federal funds rate is widely expected to remain around 3.6% for a third consecutive meeting.
Jerome Powell Faces Key Questions
Wednesday’s meeting may also be Jerome Powell’s final one as chair of the Federal Reserve.
Investors are closely watching whether Powell will announce plans to remain on the Fed’s Board of Governors after stepping down as chair.
That decision matters because staying on the board would limit President Donald Trump’s ability to immediately appoint another Fed governor.
Trump has repeatedly criticized Powell for not cutting rates faster and more aggressively.
Powell’s handling of inflation and his defense of Fed independence have made him one of the most closely watched economic figures in Washington.
Strong Earnings Help Support Stocks
Despite inflation concerns, strong quarterly earnings from major companies helped keep the broader market stable.
Visa jumped 9.3% after reporting stronger-than-expected results. CEO Ryan McInerney said consumer spending remained resilient during the quarter, offering reassurance that household demand remains solid.
Starbucks climbed 7.8% after also beating analyst expectations. The company said customers were spending more per visit, especially in North American stores.
This earnings season has largely been positive, with many companies beating Wall Street forecasts and helping support the market rally.
Even with higher gasoline prices and weaker consumer confidence caused by the Iran war, corporate profits have remained stronger than many analysts expected.
Companies Missing Expectations Get Hit Hard
While strong performers were rewarded, companies missing expectations faced steep declines.
GE Healthcare Technologies dropped 13.2% after failing to meet analyst forecasts.
Robinhood Markets fell 14.1% after reporting profit growth that disappointed investors.
Booking Holdings also moved between gains and losses after warning that the Iran conflict is hurting travel demand.
The company behind Booking.com and Priceline said the war is discouraging customers from booking travel, especially across major transit routes between Europe and Asia.
Management expects those disruptions to continue through at least the end of June.
AI Stocks Stay in Focus
Artificial intelligence stocks also remained under close scrutiny after weakness earlier in the week.
Investors are waiting for earnings reports from major tech giants including Alphabet, Amazon, Meta Platforms, and Microsoft.
These companies are among the biggest spenders on AI chips, data centers, and cloud infrastructure.
Wall Street wants proof that massive AI investments are producing real profits and productivity gains rather than becoming an expensive market bubble.
Broadcom gained 0.4% after falling 4.4% the previous day.
Micron Technology rose 4% after slipping 3.9% on Tuesday.
The results from Big Tech later in the day could shape the next major move for the broader market.
Global Markets Show Mixed Results
Outside the United States, stock markets were mixed across Europe following stronger trading in Asia.
Hong Kong’s Hang Seng Index jumped 1.7%, one of the strongest performances globally, while European markets posted a more cautious response as investors weighed oil prices and central bank policy expectations.
For now, Wall Street remains balanced between optimism over earnings and concern over inflation, energy prices, and the Fed’s next move.
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