Equities retreat sharply ahead of the Federal Reserve meeting, with crude inventories plunging 7.167 million barrels and WTI rallying near $90.00.
The Dow Jones Industrial Average fell nearly 900 points, or 1.7%, to hover just above 51,800 on Wednesday, erasing Monday’s gains. The decline followed a session high near 52,800 before selling pressure accelerated ahead of the Federal Reserve’s rate decision later in the day.
Crude oil led market moves after the Energy Information Administration reported a 7.167 million-barrel draw in commercial inventories, far exceeding the 2.5 million-barrel consensus. WTI crude surged nearly 7% to trade near $90.00, reversing earlier geopolitical-driven losses. The prior week had seen a 2.011 million-barrel build.
Heightened tensions in the Middle East, including Iranian missile strikes on U.S. forces, added to volatility. Risk assets retreated as investors awaited the Fed’s policy signals, with oil’s rally amplifying inflation concerns three hours before the decision.