Nearly $115 oil causes over 400-point drop in the Dow.

U.S. stocks eased Wednesday as oil prices rose, renewing inflation fears.

The stock market indices experienced a decline, with the Dow Jones Industrial Average dropping 1.3%, the S&P 500 declining 1.2%, and the Nasdaq Composite dipping 1.3%.

The latest news on the Ukraine-Russia war was digested by traders. Ukrainian President Volodymyr Zelenskyy urged other countries to apply more pressure on Russia as the conflict seems to be reaching a standstill.

On the day, oil prices rose, with WTI crude in the U.S. increasing by approximately 5% to nearly $115 per barrel, while Brent crude in other countries advanced more than 5% to reach $121 per barrel.

The 10-year U.S. Treasury yield reached a high of 2.41% on Wednesday, marking the first time since May 2019. The benchmark rate has increased since the beginning of the week, following Federal Reserve Chairman Jerome Powell's announcement of aggressive action on inflation. The Fed raised interest rates for the first time since 2018 last week.

Jack Ablin, Cresset Capital chief investment officer, stated that markets are struggling to determine how higher interest rates will affect inflation, the economy, and earnings growth, while also considering the impact of the ongoing war on oil supply.

On Wednesday, energy stocks surged as oil prices increased, with Hess and Diamondback Energy being the top two gainers on the S&P 500, achieving growth of approximately 4.6% and 3.9%, respectively.

Nearly 2.5% was added to General Mills' stock after it reported better-than-expected quarterly earnings and improved its full-year forecast on Wednesday.

After forecasting lower-than-expected profit and revenue for its fiscal second quarter, Adobe shares fell 9.3%.

The stock market experienced a robust performance on Tuesday, with the Dow surging over 250 points and the S&P 500 rising by 1.1%.

Jeff Kilburg, chief investment officer of Sanctuary Wealth, stated on Wednesday that there is a brief respite, but it is a sign that equities can still rise further.

The S&P 500 has recovered from its losses due to Russia's invasion of Ukraine in February, and all three averages are expected to end the month with a more than 1% increase.

On Tuesday, after the bell, Carl Icahn, a renowned activist investor, stated that an economic downturn may be imminent.

Icahn, founder and chairman of Icahn Enterprises, stated on CNBC's "Closing Bell: Overtime" that he believes there could be a recession or even something worse, according to Scott Wapner.