U.S. stocks sink on worries about inflation as gold falls below $5,000 per ounce U.S. stocks fell sharply on Wednesday as concerns over worsening inflation and rising oil prices weighed on investor sentiment. The S&P 500 dropped 1.1%, marking its first loss of the week, while the Dow Jones Industrial Average fell 1.4% and the Nasdaq composite declined 1.1%. The market’s retreat came amid fears that inflation could accelerate further, even before oil prices surged due to tensions with Iran. The Federal Reserve’s decision to maintain its benchmark interest rate unchanged added to the uncertainty. Fed officials had previously signaled one more rate cut by year-end 2026, but Chair Jerome Powell suggested these projections might be less certain due to heightened economic volatility. Powell acknowledged the difficulty of predicting oil price trends and the prolonged impact of tariffs, stating, “We just don’t know” about future economic conditions. Oil prices spiked as the war with Iran disrupted energy infrastructure in the Persian Gulf. Brent crude rose to $109.95 per barrel, while U.S. crude hit nearly $99 before settling at $96.32. Iran’s state television announced plans to target oil and gas facilities in Qatar, Saudi Arabia, and the UAE following an attack on its South Pars natural gas field. Analysts warned that prolonged high energy prices could trigger a wave of inflation, threatening global economic stability. A report released Wednesday revealed that U.S. wholesale inflation unexpectedly accelerated to 3.4% in February, raising concerns that businesses might pass these costs to consumers. This data likely influenced the Fed’s decision to hold rates steady, as lower interest rates could exacerbate inflation. Only one Fed policymaker voted to cut rates, with the rest favoring stability.#dow_jones #nasdaq_composite #sp_500 #us_stocks #fed_reserve
