Stocks fell on Tuesday, April 7, as President Donald Trump’s deadline for Iran approaches.
With the Strait of Hormuz yet to 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%, performing relatively worse than the two indexes due to weakness in chip stocks.
According to The Wall Street Journal, negotiators have no hope of reaching an agreement 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 negotiations are not over yet.
Oil prices rose as tensions rose. West Texas Intermediate crude oil futures rose 3%, trading above $116 a barrel. At the same time, Brent crude oil rose above $110 a barrel.
A notable performer was Broadcom, which gained 3% after signing more AI-related deals with Google and Anthropic. Arm Holdings, in turn, fell almost 6% after being downgraded by Morgan Stanley.
UBS cut its year-end target for the S&P 500 to 7,500 from 7,700, citing uncertainty over the US-Iran war.
