Kamal Ghorui
US stocks edged lower on Wednesday as investors awaited the Federal Reserve’s interest rate decision later in the day, while rising crude prices linked to the Iran war kept pressure on market sentiment.The S&P 500 fell 0.2 per cent, a day after retreating from its record high amid weakness in artificial-intelligence stocks and concerns over higher oil prices. The Dow Jones Industrial Average was down 97 points, or 0.2 per cent, at 9:35 am Eastern time, while the Nasdaq Composite slipped 0.4 per cent, AP reported.A fresh batch of quarterly earnings, however, offered some support, with several companies reporting stronger-than-expected growth for the opening months of 2026. AP reported.Visa jumped 10 per cent after beating analyst estimates, with CEO Ryan McInerney saying consumer spending remained resilient during the quarter.Starbucks gained 4.6 per cent after also reporting better-than-expected results, saying customers spent more per visit, particularly in North America.Most companies this earnings season have topped Wall Street expectations, helping US equities rally to records despite high fuel prices and weakened household confidence caused by the Iran conflict.But misses were punished sharply.GE Healthcare Technologies dropped 12.3 per cent after falling short of forecasts, while Robinhood Markets tumbled 11.2 per cent after reporting profit growth below expectations.Booking Holdings declined 2.4 per cent despite beating estimates for both revenue and profit. The online travel company said the Iran war had affected demand and deterred some customers from booking rooms in the latest quarter.The company behind Booking.com and Priceline said it expects the conflict to continue affecting business through the end of June, with travel disruption possible not only in the Middle East but also on major transit routes between Europe and Asia.The clearest market impact of the war remained crude oil.Brent crude for June delivery rose another 5 per cent to $116.80 a barrel. Brent for July delivery, where most trading activity is concentrated, climbed 4.9 per cent to $109.51.Brent prices are nearing their wartime peak of just above $119 a barrel and remain far above the roughly $70 level seen before the conflict began.The surge in oil is one reason markets widely expect the Federal Reserve to keep interest rates unchanged later on Wednesday. While lower rates can support growth, they also risk fuelling inflation.Traders broadly expect the Fed to hold the federal funds rate steady in what is likely to be Jerome Powell’s final meeting as chair. Investors are also watching for any indication on whether Powell will remain at the Fed after stepping down as chair.Powell has faced criticism from US President Donald Trump for not cutting interest rates faster and more aggressively.In the bond market, the yield on the 10-year Treasury note rose to 4.38 per cent from 4.36 per cent late Tuesday after the latest rise in oil prices.Across global markets, European indices were mixed after a firmer finish in Asia. Hong Kong’s Hang Seng jumped 1.7 per cent, among the strongest gains worldwide.
