Wall Street pulls back and crude prices fluctuate as investors react to shifting signals on U.S.-Iran tensions.
By yourNEWS Media Newsroom
U.S. financial markets moved lower Tuesday as uncertainty surrounding a ceasefire with Iran weighed on investor sentiment, prompting swings in both equities and energy prices.
The S&P 500 reversed earlier gains and closed down 0.6 percent after Vice President JD Vance canceled a planned trip to Pakistan, where he had been expected to participate in negotiations aimed at extending the temporary truce.
The Dow Jones Industrial Average fell 293 points after briefly rising by about 400 points earlier in the session, while the Nasdaq Composite also declined 0.6 percent.
Oil markets reflected similar volatility. The price of Brent crude shifted sharply during the day, moving from below $95 per barrel to nearly $100 before settling at $98.48, a gain of 3.1 percent, and later easing back below $98.
Despite the fluctuations, market movements remained less severe than earlier in the conflict, when crude prices briefly exceeded $119 per barrel and the S&P 500 dropped close to 10 percent from its previous peak.
Major indexes remain near recent highs, indicating that investors continue to expect a resolution that avoids broader economic disruption.
Corporate earnings helped provide some support to the market. UnitedHealth Group rose 7.6 percent after reporting stronger-than-expected results and raising its full-year profit outlook. Quest Diagnostics climbed 6 percent following a similar earnings beat and upgraded forecast.
Those gains were offset in part by a 12.9 percent drop in Tractor Supply Company, which reported weaker-than-expected quarterly profit and revenue.
Economic data released Tuesday showed continued strength in consumer spending. Retail sales rose more than analysts anticipated in March, including gains outside gasoline purchases, suggesting that household spending has remained steady despite higher fuel costs linked to the conflict.
“It’s become cliched to say that the economic hit will depend on the duration of the Middle East conflict, but that cliché does ring true,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management.
Investor focus has centered on the Strait of Hormuz, a key passage for global oil shipments. Prolonged disruption in the waterway could significantly affect supply and pricing worldwide.
In corporate developments, Apple Inc. declined 1.9 percent after CEO Tim Cook announced plans to step down on September 1 and transition to executive chairman. Leadership is set to pass to John Ternus.
Meanwhile, Amazon gained 1.2 percent after artificial intelligence firm Anthropic announced a long-term agreement to invest more than $100 billion in Amazon Web Services to support development of its Claude chatbot.
International markets showed mixed performance. European indexes declined, while South Korea’s Kospi rose 2.7 percent, marking one of the stronger global gains.
In the bond market, yields edged higher, with the 10-year U.S. Treasury yield rising to 4.28 percent from 4.26 percent a day earlier.
Separately, Kevin Warsh, President Donald Trump’s nominee to lead the Federal Reserve, said he had not committed to lowering interest rates, as investors continue to monitor the central bank’s independence and policy direction.
Market participants remain focused on geopolitical developments and upcoming economic data as uncertainty surrounding the ceasefire continues to influence trading conditions.
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