SynopsisCrude oil prices surged and US equity futures declined following renewed Middle East conflict. American crude oil jumped nearly five percent, topping eighty-three dollars a barrel. Treasury futures also moved lower, and the dollar strengthened against major currencies. Technology shares remained under pressure as investors questioned artificial intelligence spending returns. Markets await the Federal Reserve policy decision and significant corporate earnings reports.APAttention on Wednesday is also on the Federal Reserve, which will announce its policy decision.Crude oil jumped and US equity-index futures fell after fighting erupted in the Middle East, reigniting tensions after several days of calm and reviving concerns over energy supplies.American crude jumped around 5% to top $83 a barrel, snapping a three-day decline, after the US military said it successfully intercepted an Iranian “attempted surprise attack” on troops based in the Middle East. A few days of calm saw global benchmark Brent post its biggest three-day decline since April 2020, settling at $84.09 on Tuesday. Treasury futures also inched lower, while the dollar was a touch stronger against most of its Group-of-10 peers.US equity-index futures dipped, with contracts for the Nasdaq 100 sliding 0.6%, after the attacks. Earlier, the continued selloff in chipmakers had left the underlying gauge on the brink of a technical correction. Focus remains on semiconductors after South Korean bellwether SK Hynix Inc. fell 4.5% in pre-market after its profit missed lofty expectations.Read more | Stocks in news: L&T, Tata Capital, Ambuja Cements, Suzlon Energy, RVNLOil has swung sharply this month, and the focus now shifts to whether diplomatic efforts can deliver a lasting reduction in supply risks. While easing tensions have unwound much of oil’s war premium, traders are now looking for clearer signs that shipping through the Strait of Hormuz can normalize.“We remain cautious of any potential deal that does not concretely settle the Hormuz topic, given disagreements over management of the Strait led to Iranian aggression and an early failure of the prior MOU,” said Ryan McKay, senior commodity strategist at TD Securities. Meanwhile, President Donald Trump welcomed Israeli Prime Minister Benjamin Netanyahu to the White House Tuesday as the US leader sought to avoid renewed bombing in Iran and instead laid the ground for further diplomacy.On Tuesday, technology shares remained under pressure as investors questioned whether massive spending on AI will generate returns sufficient to justify elevated valuations. Micron Technology Inc. and Sandisk Corp. were among the biggest drags on the S&P 500, while the Philadelphia Semiconductor Index fell 4.5%, putting the gauge on course for its worst month since 2002 after its strongest quarter on record.The divergence in S&P 500 and Nasdaq 100 moves “reflects rotation” away from chipmakers, First New York portfolio manager Vikram Rai said. The Nasdaq 100 “can’t go up if semiconductors and memory don’t go up,” he added. The moves create a challenging backdrop ahead of earnings from the largest US tech companies. Microsoft Corp. and Meta Platforms Inc. report results on Wednesday, followed by Apple Inc. and Amazon.com Inc. a day later.Attention on Wednesday is also on the Federal Reserve, which will announce its policy decision. Analysts at JPMorgan Chase & Co. said the probability of a rate hike is likely less than the roughly 30% chance currently priced, as “inflation, while elevated, does not appear to at-risk of an upside explosion.” They assign a 50% chance to a “hawkish hold,” as the central bank will want to stay vigilant even though recent energy prices suggest disinflation may be ahead.“A mild bout of risk aversion is looming over financial markets ahead of the Fed policy decision and two weeks of significant corporate earnings,” RSM Chief Economist Joseph Brusuelas said. With tech and oil company results ahead, there might have been “a bit more willingness to put capital to work” if not for rising concerns about AI competition from China and tech-ecosystem financials, he said.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. 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