A trader works on the floor of the New York Stock Exchange (NYSE) on December 10, 2025 in New York City, USA, as Federal Reserve Chairman Jerome Powell’s press conference after the Fed’s interest rate announcement is broadcast on a screen.
Brendan McDiarmid | Reuters
Stocks fell after Wednesday’s producer price index beat expectations and traders awaited the Federal Reserve’s decision on interest rate policy.
of Dow Jones Industrial Average Lost 401 points (0.9%). of S&P500 It fell 0.5%. Nasdaq Composite.
The producer price index, which measures changes in wholesale prices, rose 0.7% in February, well above the 0.3% forecast by economists compiled by Dow Jones. The report shows that inflation was already unstable before the outbreak of the Iran war, an event that raises concerns of stagflation amid rising oil prices.
“The higher-than-expected numbers are specific to tariffs,” said Todd Schoenberger, chief investment officer at Crosscheck Management, noting that metals, industrial raw materials and manufacturing costs are all seeing price increases. “This is structural rather than temporary inflation and is likely to impact monetary policy into the third quarter.”
“We’ve seen a spike in energy prices since the Iran war began, but it hasn’t shown up in these reports yet. Wall Street is clearly bracing for rapid price increases that will trickle down to the consumer level,” Schoenberger continued.
U.S. crude oil futures prices rose on this day. West Texas Intermediate Futures Up 3% to $99 per barrel. international benchmark brent crude oil The price rose 5% to $109 per barrel.
The move came after Israel reportedly attacked Iran’s largest gas processing facility in Bushehr province. Iran has also threatened attacks on oil facilities in Saudi Arabia, the United Arab Emirates, and Qatar. The country has already launched new attacks on the UAE’s energy infrastructure this week, raising concerns about oil and fuel shipments.
President Donald Trump has granted a 60-day waiver to the U.S. shipping law, known as the Jones Act, in an effort to stabilize oil prices. White House press secretary Caroline Levitt said in a statement that the moratorium “will allow critical resources such as oil, natural gas, fertilizer and coal to freely flow into U.S. ports for 60 days.”
Oil prices soared in the previous trading day after President Trump said in a Truth social post that the United States does not need support from NATO allies in the Middle East. The president suggested earlier this week that a coalition could be formed to help protect ships attempting to pass through the Strait of Hormuz, but some countries were “less keen” to join.
“I think we’re in a situation where there’s more volatility today because there’s more uncertainty,” said Anshul Sharma, chief investment officer at Savvy Wealth.
“If oil prices stay elevated here… we know that will ripple through the economy,” he added. “The Fed’s job is going to become even more difficult in terms of mission balance.”
Investors are now focused on the Fed’s interest rate decision, expected on Wednesday. Markets expect the central bank to keep interest rates unchanged in the range of 3.5% to 3.75%. Traders are watching for any guidance from Federal Reserve Chairman Jerome Powell on whether oil prices could influence future monetary policy.
Pay attention in terms of profits micron technologyas the chipmaker is scheduled to release its latest quarterly results after the bell on Wednesday. The stock has tumbled this year, rising nearly 62% as demand for high-bandwidth memory soars.
