Stocks fell on Tuesday, April 7, as President Donald Trump’s deadline on Iran approaches.
With the Strait of Hormuz not yet open, the stock market rumbled as hopes of a ceasefire fade.
The Dow Jones Industrials fell 256 points, or 0.6%, while the S&P 500 fell 0.5%. The Nasdaq fell 0.8% and relatively underperformed the two indexes due to weak chip stocks.
According to The Wall Street Journal, negotiators are not hopeful that a deal will be reached before the deadline, as there is still too much room between both sides, according to US officials. Despite this, Iranian news sources have suggested that the talks are not over yet.
Oil prices rose due to the heightened tensions. West Texas Intermediate crude futures rose 3% to trade above $116 a barrel. barrel. At the same time, Brent oil rose above 110 dollars per barrel. barrel.
A standout performer was Broadcom, which gained 3% after inking several AI deals with Google and Anthropic. Arm Holdings, on the other hand, fell almost 6% after being downgraded by Morgan Stanley.
UBS cut its year-end S&P 500 target to 7,500 from 7,700, citing uncertainty from the US-Iran war.
