Stocks fell Tuesday, April 7, as President Donald Trump’s Iran deadline approached.
With the Strait of Hormuz not yet open, the stock market has been shaken as hopes for 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%, relatively underperforming both indexes due to weakness in chip stocks.
According to the Wall Street Journal, negotiators are not hopeful a deal will be reached before the deadline because there is still too much space between the two sides, according to U.S. officials. Despite this, Iranian sources have suggested that the negotiations are not yet over.
Oil prices have surged due to increased tensions. West Texas Intermediate crude futures rose 3%, trading above $116 a barrel. At the same time, Brent crude climbed above $110 a barrel.
Broadcom stood out, gaining 3% after striking more artificial intelligence deals with Google and Anthropic. Arm Holdings, in turn, fell almost 6% after being downgraded by Morgan Stanley.
UBS lowered its year-end target for the S&P 500 from 7,700 to 7,500, citing uncertainty over the U.S.-Iran war.
