Stocks retreat on Iran, AI concerns as Fed meeting looms

Markets got off to an uneven start in Asian trading on Wednesday as worries about the Iran conflict and health of the AI sector ​dominated ahead of the Federal Reserve’s decision and earnings from tech megacap stocks later in the session. MSCI’s broadest index of ‌Asia-Pacific shares outside Japan eased 0.2%, retreating for a second day from record highs set on Monday, led by declines for Taiwanese chipmakers. Japanese markets were closed for a holiday. S&P 500 e-mini futures nudged up 0.1%, while Brent crude rose 0.4% to $111.71 per barrel as efforts to end the Iran conflict hit an impasse. “Markets remained cautious ​overnight as peace talks continued to stall, with Iran seeking the lifting of the US naval blockade of the Strait of Hormuz ​and mediators expecting a revised Iranian proposal in coming days,” analysts from Westpac wrote in a research note.