US Stock Market: Fed meeting in focus as Wall Street navigates volatility amid evolving US-Iran peace deal

Wall Street is navigating heightened volatility ahead of Wednesday's Federal Reserve policy decision, with the S&P 500 down over 2% and Nasdaq down 4.5% from recent peaks as investors take profits from the AI-led rally amid sticky inflation and monetary policy uncertainty. A preliminary US-Iran peace agreement that could reopen the Strait of Hormuz has pushed Brent crude down over 4%, easing energy-driven inflation concerns. Investors will closely watch the Fed's updated economic projections and new Fed leadership's first press conference for clues on rates, balance sheet policy, and communication strategy.