US Stock Market Today: S&P 500, NASDAQ Drop as Trump’s Iran Deadline Lifts Oil and Treasury Yields

US stocks, bonds, and cryptocurrencies fell on Tuesday, while oil climbed as traders reacted to the risk of a wider Middle East conflict before President Donald Trump’s 8 p.m. deadline for Iran to respond on reopening the Strait of Hormuz. 

At the same time, investors weighed the effect of higher energy prices on inflation, growth, and corporate sentiment. Meanwhile, company-specific updates added to the day’s market moves, especially in technology, healthcare, media, and insurance.

Stocks Slide as Oil and Yields Move Higher

US and European equities moved lower as investors reduced risk exposure. The S&P 500, NASDAQ 100, Dow Jones Industrial Average, Stoxx Europe 600, and MSCI World Index all fell during the session. At the same time, Treasury yields advanced, which added more pressure to stocks, especially rate-sensitive sectors.

Moreover, the decline extended beyond equities. Bitcoin and Ether also fell, which showed that caution spread across several markets at once. Therefore, the session reflected a broad move away from assets that usually benefit from stable growth and lower volatility.

Oil remained at the center of trading. West Texas Intermediate crude rose above recent levels as markets focused on supply risks linked to the Strait of Hormuz and fresh military action around Iranian energy infrastructure. As energy prices climbed, investors also reassessed how long price pressures could stay elevated if the conflict continues.

Trump's Deadline Keeps Geopolitics in Focus

Trump increased pressure on Iran before the Tuesday evening deadline. He wrote that “a whole civilization will die tonight” if no agreement is reached. He also said new Iranian leaders with “different, smarter, and less radicalized minds” could still reach a deal, which kept markets focused on the possibility of both diplomacy and escalation.

Meanwhile, Iran rejected the proposed ceasefire terms tied to the reopening of the Strait of Hormuz. Reuters reported that Tehran demanded a permanent end to strikes, the lifting of sanctions, and control of the strait, while Washington kept the deadline in place. Consequently, traders had to price in several outcomes at once, from a temporary pause in the conflict to broader military action.

The situation also affected regional assets. Gulf stock markets fell as uncertainty over the deadline and the shutdown of the strait continued to unsettle investors. In addition, renewed attacks in the region added to fears that the conflict could disrupt more oil and petrochemical infrastructure in the Gulf.

Technology Weakness Adds Pressure to Major Indexes

Technology stocks led part of the market decline after Apple fell on a report that its foldable iPhone project had run into engineering setbacks. The report said the device faced issues during the engineering testing phase, which could delay mass production and future shipments. As a result, the news weighed on Apple and added pressure to the NASDAQ 100.

However, not every technology-related stock moved lower. Broadcom gained after announcing a long-term agreement with Google to develop and supply custom artificial intelligence chips through 2031. The deal centers on Tensor Processing Units, which Google uses to support its AI infrastructure and cloud services.

In addition, Anthropic said its revenue run rate had climbed to more than $30 billion from $9 billion at the end of 2025. The company also confirmed plans involving Broadcom and Google as demand for AI computing capacity continues to expand. Therefore, while the broader technology sector faced pressure, selected AI-linked names remained supported by fresh business developments.

Corporate Developments Shape Single-Stock Moves

• Apple fell after its foldable iPhone project reportedly hit engineering setbacks.

• Broadcom signed a long-term AI chip agreement with Google through 2031.

• Google expanded its TPU supply arrangement with Broadcom.

• Anthropic said its revenue run rate topped $30 billion.

• Anthropic confirmed additional work with Broadcom and Google.

• Bill Ackman proposed a bid for Universal Music Group.

• Universal Music Group shares rose on the proposal.

• Major US health insurers gained after a 2027 Medicare rate increase.

• Gilead Sciences agreed to buy Tubulis in a deal worth up to $5 billion.

• Intel said it is joining Elon Musk’s Terafab chip project.

• Consumer discretionary and technology shares led much of the equity weakness.

• AI-linked stocks remained active despite the broader market selloff. 

Overall, markets remained tied to developments around the Iran deadline and the risk of further conflict. Meanwhile, higher oil prices, rising yields, and weakness in major technology stocks kept pressure on sentiment through the session.

Also Read: US Stock Market Today: Wall Street Gains as Iran Truce Talks Cool Oil Prices and Support Risk Appetite