Geopolitical Tensions and Fed Transition Weigh on U.S. Equities

U.S. equity markets entered a cautious phase on Tuesday, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closing lower. The downturn was primarily driven by escalating geopolitical jitters and restricted maritime traffic through the Strait of Hormuz, which pushed oil prices higher and dampened risk appetite. The broader market decline occurred as investors processed a mix of corporate earnings and political developments. While UnitedHealth Group surged 7.03% following a strong earnings report, other industrial giants like GE Aerospace and RTX saw declines of 5.54% and 4.36% respectively, despite both companies beating first-quarter analyst estimates. Technology heavyweights faced specific headwinds. Apple shares dropped 2.60% amid reports of CEO Tim Cook's planned departure, while Tesla slipped 1.55% as the market positioned itself ahead of the company's upcoming earnings release. On the policy front, Federal Reserve Chair nominee Kevin Warsh appeared before the Senate Committee on Banking, Housing, and Urban Development. Warsh's testimony focused on the independence of the central bank and the implications of artificial intelligence, adding another layer of scrutiny for investors monitoring the transition of Fed leadership in May. Market sentiment may shift in the immediate term following reports that President Trump intends to extend the current ceasefire. This development, which broke after the closing bell, could provide a catalyst for a rebound in ongoing headline-driven trading.