The BHP Group Ltd (ASX: BHP) share price is lagging behind the ASX 200 on Wednesday.
This comes despite the company not releasing any new announcements to the ASX.
At the time of writing, the mining giant's shares are down 2.63% to $38.15.
In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 1.45% to 6,707.4 points.
What's dragging BHP shares lower?
There are a couple of reasons as to why the BHP share price is trading in negative territory today.
First and foremost, investors are heading for the hills following a strong sell-off on Wall Street yesterday.
The S&P/ASX 300 Metals and Mining Index (ASX: XMM) is currently the worst performing sector across the ASX, down 2.56%.
The market appears to be keeping a close eye on the crucial US Federal Reserve meeting tomorrow.
Economists are predicting the central bank to lift interest rates by up to 100 basis points to combat inflation.
Previously, US Fed chair Jerome Powell made hawkish comments about keeping a tight leash on inflation. He reiterated the goal to bring down annual inflation levels to 2% compared to the 8.3% recorded last month.
In addition, iron ore futures are falling 0.19% to US$98.80 per tonne.
After trading above the psychological $100 barrier for the past two weeks, the steel-making ingredient is struggling amid concerns about Chinese demand.
The country's strict zero-COVID policy and weakened property sector is keeping demand subdued despite news about easing border restrictions.
BHP share price summary
Since the beginning of the year, the BHP share price has moved in circles to register a gain of 3%.
Over the past 12 months, the company's shares are up 13%.
Based on the current price, BHP presides a market capitalisation of approximately $193 billion.
