- Wall Street closed lower across the board on Tuesday, with the Dow falling 0.8%, the S&P 500 dropping 0.9%, and the Nasdaq sliding 1%.
- Energy markets drove much of the volatility, with Brent and WTI crude jumping by more than 4.5% each.
- Trump said the U.S. could help stabilize shipping lanes by providing insurance guarantees and, potentially, naval escorts for vessels traveling through the Strait of Hormuz.
U.S. stock futures traded lower late Tuesday after a volatile session on Wall Street as escalating tensions in the Middle East and a surge in oil prices rattled investor sentiment.
As of 9.17 p.m. ET, Nasdaq 100 and S&P 500 futures were down 0.4% each, while Dow futures were down 0.3%.
On Stocktwits, retail sentiment toward the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust (QQQ) was ‘bearish’ amid ‘high’ message volume, and sentiment toward the SPDR Dow Jones Industrial Average ETF Trust (DIA) was ‘neutral’ amid ‘high’ message volume.
US Market Drivers
Markets reacted to escalating concerns around the ongoing U.S.-Iran conflict after renewed attacks across the Middle East raised fears of prolonged disruptions to global energy supplies.
In the prior session, the Dow Jones Industrial Average fell 0.8%, while the S&P 500 slipped 0.9% and the Nasdaq Composite dropped 1%. All 11 sectors in the S&P 500 finished lower. Materials was the worst-performing sector, falling about 2.5%, followed by industrials, which declined 1.9%.
Ryan Detrick, Chief Market Strategist at Carson Group, said on X that it was a “good reminder that we just had the smallest first two-month range EVER for the S&P 500. Tight ranges don't last forever.”
Investor concerns increased after Iran’s Revolutionary Guard threatened to target ships attempting to transit the strait. Tanker traffic through the route largely halted as the conflict escalated.
U.S.President Donald Trump said on Tuesday that the U.S. would provide insurance guarantees and potentially naval escorts to vessels traveling through the Strait of Hormuz to ensure energy shipments continue. “No matter what, the United States will ensure the FREE FLOW of ENERGY to the WORLD,” Trump said on Truth Social.
Energy markets were at the center of the volatility. Brent crude settled up 4.71%, while West Texas Intermediate crude gained 4.68%, after both contracts had surged more than 9% earlier in the session.
Oil prices have rallied sharply since the conflict intensified, with Brent climbing more than 12% over two sessions as disruptions around the Strait of Hormuz threatened one of the world’s most critical oil shipping routes.
Meanwhile, Tehran-backed Hezbollah launched missile and drone attacks toward Tel Aviv, and the U.S. embassy in Riyadh was reportedly struck by drones. The U.S. State Department also ordered evacuations of some diplomatic staff from Bahrain, Iraq and Jordan.
Trending Stocks To Watch On NYSE, Nasdaq
Micron Technology (MU): The stock is trending after Goldman Sachs raised its price target on the chipmaker to $360 from $235 while maintaining a “Neutral” rating. The company also began sending customers early samples of a new 256GB memory module built for AI data centers that deliver higher capacity while using less power.
ImmunityBio (IBRX): The stock is in focus after the company warned of a “terrible” shortage of BCG, a standard therapy for early-stage bladder cancer, and said it is preparing shipments of its immunotherapy Anktiva to Saudi Arabia amid rising geopolitical tensions.
Battalion Oil (BATL): The stock is in focus after the company said it will raise about $15 million from a new institutional investor through a share offering priced at $5.5.
Trump Media & Technology Group (DJT): The stock is trending amid intense community debate over President Donald Trump’s escalating military actions against Iran, with Stocktwits sentiment remaining “bearish” over the past three months amid “high” message volume.
Sea (SE): The stock drew retail attention after the Singapore-based tech conglomerate reported mixed fourth-quarter results, with earnings missing analyst expectations even as revenue beat estimates.
How Global Markets Are Performing Today
In broader markets, the yield on the benchmark 10-year U.S. Treasury note was near 4.06%, while gold traded around $5,136 after pulling back amid dollar strength.
Asian markets fell on Wednesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan dropping about 2.5%. South Korea’s Kospi declined about 4% and Japan’s Nikkei 225 slid about 2.5% for a third straight session of losses. Energy-importing economies such as Japan and South Korea are seen as particularly vulnerable to sustained rises in oil prices.
Adam Kobeissi, founder of The Kobeissi Letter, also noted on X the broad market pressure across asset classes, saying, “The S&P 500, Gold, Silver, Bitcoin, and Bonds are ALL down sharply. But why? What’s happening right now is a modest rush to the sidelines.”
Among the catalysts for Wednesday are the ADP employment report, S&P final U.S. services PMI, ISM services data and the Fed Beige Book, while investors will also watch quarterly earnings from Abercrombie & Fitch, Broadcom and Okta.
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