Stocks slipped on Tuesday as investors weighed strong corporate earnings against growing doubts that a U.S.-Iran ceasefire would hold past Wednesday’s expiration.
The S&P 500 fell 0.4%, the Dow Jones Industrial Average dropped 194 points (0.4%), and the Nasdaq Composite eased 0.3%, pulling back from recent highs built on optimism about a potential Iran deal. Oil prices moved in the opposite direction, with Brent crude rising 3.3% to $98.63 and West Texas Intermediate futures gaining 4% to above $93 a barrel, reflecting market nerves over the Strait of Hormuz.
The tension came into focus after Vice President JD Vance’s planned participation in Iran negotiations was paused due to what U.S. Officials described as Tehran’s lack of commitment, according to reports cited by CNBC. President Donald Trump told the network he still expects a “great deal” but reiterated that the military is ready to act if no agreement is reached by the deadline, adding he does not want to extend the ceasefire.
“Developing trust is difficult in this situation,” said Brian Mulberry of Zacks Investment Management. “There’s a long history with Iran that causes suspicion of any deal lasting, and their delegation may struggle to deliver on commitments given how fractured their leadership is.” Still, he expects control of the Strait of Hormuz to be settled by week’s end.
Amid the geopolitical jitters, corporate earnings offered a counterweight. UnitedHealth Group jumped 8.8% after reporting better-than-expected first-quarter profit and revenue, and raising its full-year 2026 outlook. Quest Diagnostics added 4.9% for similar reasons, helping to offset a 12% slide in Tractor Supply, which missed both profit and revenue forecasts.
For more on this story, see ASX Slips as US-Iran Tensions Drive Oil Prices and Energy Stocks.
A separate report showed U.S. Retailers earned more in March — the first full month of the conflict — than analysts had predicted, with ex-gasoline sales showing stable growth, suggesting underlying economic resilience despite oil volatility.
Even as Iran uncertainty weighed on broad markets, certain sectors continued their runs. The large-cap tech ETF XLK is on track for a record 15th straight winning session, while the small-cap tech fund PSCT notched its seventh consecutive intraday record high. Semiconductor ETF SOXX tied its 2014 streak with 15 straight wins and logged its 10th straight intraday all-time high. The Dow Jones Transportation Average posted its eighth intraday record high in the last 10 sessions.
This follows our earlier report, Stock Market Today: Wall Street Slips as Oil Rises Amid Middle East Truce Doubts.
Amazon shares rose more than 1% after announcing plans to invest up to $25 billion in AI startup Anthropic, underscoring how long-term thematic bets are still finding traction even amid short-term geopolitical noise.
Why did oil prices rise while stocks fell?
Oil prices increased as traders reacted to the possibility that the U.S.-Iran ceasefire might not be extended, raising concerns about potential disruption to shipments through the Strait of Hormuz, a critical chokepoint for global crude exports. Stocks declined because the same uncertainty dampened risk appetite, even as strong earnings from companies like UnitedHealth provided partial support.
How significant were the earnings beats from UnitedHealth and Quest Diagnostics?
Both companies reported first-quarter profit and revenue above analyst expectations and raised their full-year 2026 forecasts. UnitedHealth’s stock rose 8.8% and Quest Diagnostics gained 4.9%, reflecting investor confidence in their ability to grow despite external pressures, and helping to offset weaker results elsewhere in the market.
