Wall Street Retreats as U.S.-Iran Ceasefire Deadline Looms

Major U.S. indices retreated from record highs on Tuesday, with the Dow, S&P 500, and Nasdaq all closing down 0.6%. The sell-off was primarily driven by renewed fears of conflict in the Middle East as a ceasefire between the U.S. and Iran approaches its Wednesday expiration. Crude oil futures surged more than 5% during the session, reflecting market anxiety over potential supply disruptions. President Donald Trump stated that while he hopes for a 'great deal,' the U.S. military remains prepared to resume bombing operations if negotiations fail. Further signaling of tension emerged as Vice President JD Vance's scheduled trip to Pakistan was suspended following a lack of response from Tehran regarding American negotiating positions. Market data showed the Dow Jones Industrial Average fell 293.18 points to 49,149.38, while the S&P 500 dropped 45.13 points to 7,064.01. In the bond market, the benchmark 10-year Treasury yield climbed 4.2 basis points to 4.292%. Despite the geopolitical gloom, strong economic data provided some support. March retail sales grew by 1.7%, exceeding the 1.4% forecast. Corporate earnings were also mixed; UnitedHealth (UNH) jumped 7% on raised guidance, and D.R. Horton (DHI) rose 5.8%, while 3M (MMM) fell 1.9% due to a disappointing full-year outlook. Sector performance was starkly divided. Energy stocks rallied alongside oil, but airline shares plummeted 4.3% and gold-related equities saw a 6.4% decline as the precious metal's price slid.