US stock markets fell on Tuesday as investors grew more cautious on uncertainty over a possible peace deal between the US and Iran, the achievement of which has been called into question ahead of the expiry of the ceasefire.
The S&P 500 index fell 0.63 percent, closing at 7,064.01 points, while the Nasdaq Composite lost 0.59 percent to 24,259.96. The Dow Jones Industrial Average lost 293.18 points, or 0.59 percent, ending trading at 49,149.38 points.
The growing concern was further fueled by reports from The New York Times and Axios that US Vice President JD Vance’s trip to Iran talks was delayed due to Tehran’s lack of willingness to compromise.
The situation was further complicated by President Donald Trump, who announced the possibility of extending the truce, but also said that the American army is ready for military action if an agreement is not reached. Earlier in the day, Trump even accused Iran of repeatedly violating the ceasefire.
In the commodity markets, oil prices reversed the trend after several days of decline. US crude oil (WTI) rose 2.81 percent to $92.13 per barrel, while Brent gained 3.14 percent to $98.48.
According to Brian Mulberry of Zacks Investment Management, the market faces deep mistrust regarding the long-term viability of an eventual deal with Iran, given the country’s complex political and military structures.
Nevertheless, despite the short-term upheavals, some analysts remain optimistic. Strong quarterly corporate results and expected double-digit earnings growth continue to support the market, suggesting the current downturn may be temporary.
Recall that in the previous week, the S&P 500 and the Nasdaq Composite reached record levels, driven by hopes that the conflict in the Middle East could end soon. At the same time, the Nasdaq broke the streak of 13 consecutive days of growth – the longest since 1992, writes Seebiz.
