Stocks fell and oil climbed on concern the war in the Middle East is intensifying ahead of President Donald Trump’s deadline for Iran to agree to a ceasefire, reopening the Strait of Hormuz.
Fears that an escalation of the conflict could heighten a fuel squeeze and endanger the economy unnerved traders, with the New York Times reporting Iran stopped negotiating a truce with the US. The S&P 500 halted a four-day advance. US crude topped $115. Bond yields rose. Bitcoin slid.
The US attacked military targets across Iran’s Kharg Island as Trump pressed the nation to make an agreement before his Tuesday 8 p.m. deadline, saying that a “whole civilization will die tonight” if that does not occur.
He also held out the possibility of a deal, saying new Iranian leaders with “different, smarter, and less radicalized minds” could reach an accord.
Trump began issuing deadlines on March 21 to force Iran to reopen Hormuz, which carries roughly a fifth of seaborne oil shipments, and has repeatedly extended the timeline.
“Investors are likely to remain on edge and markets unable to establish trends, probably until there is a clear outcome later this evening,” said Paul Christopher at Wells Fargo Investment Institute.
Meantime, Russia and China vetoed a United Nations Security Council resolution that would have encouraged countries to coordinate defensive efforts on reopening the Strait of Hormuz.
Caution is paramount as headline sensitivity is running high, noted Craig Johnson at Piper Sandler.
“Against this uncertain backdrop, we have been advising investors to progressively de-risk portfolios the longer oil prices remain high,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.
Fading sentiment among retail investors may be a sign that a near-term equity rebound is in the making, according to strategists at Citadel Securities.
Individual traders turned net sellers of US equities and options last week on Citadel Securities’ platform, according to Scott Rubner, an occurrence seen just 18 times since January 2020.
While geopolitical risks remained front and center, traders kept an eye on the latest economic data for clues on any potential impacts of the war.
Near-term inflation expectations jumped in March by the most in a year as consumers anticipated higher gas and food prices with the onset of war in the Middle East, according to a Federal Reserve Bank of New York survey released Tuesday.
Fed Bank of New York President John Williams told Bloomberg Television his outlook for underlying price pressures was largely unchanged despite his expectation that higher energy costs stemming from the war will boost overall inflation.
Corporate Highlights:
- Apple Inc. fell after Nikkei Asia reported the company is seeing setbacks in the engineering test phase of the foldable iPhone and that it could push back its production and shipment schedule.
- Intel Corp. is joining Elon Musk’s long-shot effort to develop semiconductors for Tesla Inc., SpaceX and xAI, marking a surprising twist in the chipmaker’s comeback bid.
- Anthropic PBC said its revenue run rate has now topped $30 billion, up from $9 billion at the end of 2025, and confirmed plans to work with Broadcom Inc. and Google to power its burgeoning operations.
- Bill Ackman is pitching a deal for Universal Music Group NV — the record label giant behind celebrities including Taylor Swift and Drake — that he’s claiming will dramatically boost the value of company largely by moving its listing to the US.
- Shares of major insurance companies climbed as the US Medicare program will pay private insurers 2.48% more in 2027, a meaningful improvement over the initial rates the agency proposed in January.
- Gilead Sciences Inc. agreed to buy private German biotech Tubulis GmbH in a deal worth up to $5 billion as it looks to boost its portfolio in a hot new area of cancer drug development.
What Bloomberg strategists say…
“If war concerns prevail, the combination of strong corporate guidance and higher dispersion would shield equities from the drag of higher oil prices.”
—Michael Ball, Macro Strategist, Markets Live. For the full analysis, click here.
Some of the main moves in markets:
Stocks
- The S&P 500 fell 0.8% as of 12 p.m. New York time
- The Nasdaq 100 fell 1.1%
- The Dow Jones Industrial Average fell 0.8%
- The Stoxx Europe 600 fell 1%
- The MSCI World Index fell 0.7%
Currencies
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro rose 0.3% to $1.1574
- The British pound was little changed at $1.3242
- The Japanese yen fell 0.1% to 159.89 per dollar
Cryptocurrencies
- Bitcoin fell 2.4% to $68,136.93
- Ether fell 3.2% to $2,079.33
Bonds
- The yield on 10-year Treasuries advanced two basis points to 4.35%
- Germany’s 10-year yield advanced nine basis points to 3.09%
- Britain’s 10-year yield advanced seven basis points to 4.90%
Commodities
- West Texas Intermediate crude rose 2.4% to $115.13 a barrel
- Spot gold was little changed
Disclaimer: This report is auto generated from the Bloomberg news service. ThePrint holds no responsibility for its content.