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Stock market update today: When will Dow, S&P, Wall Street stabilize amid US-Iran war? Experts weigh in
US stock markets remained volatile on Tuesday as investors grappled with uncertainty surrounding the US-Iran war
US stock markets remained volatile on Tuesday as investors grappled with uncertainty surrounding the escalating conflict between the US and Iran. President Donald Trump set a fresh 8 PM ET deadline tied to the Strait of Hormuz, warning that an ‘entire civilization’ will be wiped off tonight.
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Wall Street struggles for direction
The S&P 500 slipped around 0.3% in afternoon trading after earlier falling as much as 1.2%, while the Dow Jones Industrial Average dropped roughly 165 points (0.4%). The Nasdaq-100 also declined about 0.5%.
Market swings remained sharp and unpredictable. Within the first hour of trading alone, the Dow fluctuated between a gain of 74 points and a loss of 425, underscoring the fragile investor sentiment.
Read More: 'Civilizations don't die by bombing': Iran embassies respond to Trump's threat
Six of the 11 sectors were in the red, led by consumer-facing stocks, while volatility remained elevated, with the Cboe Volatility Index hovering near 26.
Oil keeps surging
The biggest reaction was seen in energy markets. Crude prices surged as the conflict disrupted production and transportation routes across the Persian Gulf.
US crude rose 1.3% to $113.82 per barrel, while Brent crude climbed above $110 - well above pre-war levels near $70.
The Strait of Hormuz remains central to the crisis, with roughly one-fifth of global oil supply passing through the waterway.
U.S. stock markets remained volatile on Tuesday as investors grappled with uncertainty surrounding the escalating conflict between the United States and Iran, with President Donald Trump setting a fresh deadline tied to the Strait of Hormuz.
Read More: White House rules out nuclear weapons in Iran amid uncertainty over peace talks
When will stock market stabilize?
Investors are now watching closely for a decisive outcome, whether diplomatic or military, as the key trigger for market stability.
“Investors are likely to remain on edge and markets unable to establish trends, probably until there is a clear outcome later this evening: a deal, the US/Israeli strikes intensify, or Iran’s retaliation becomes escalatory instead of proportional,” Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, said as per The Associated Press.
Sector moves and stock-specific action
Rising oil prices hit companies with high fuel costs the hardest. Norwegian Cruise Line fell 3.8%, while United Airlines dropped 2.9%.
Retailers sensitive to consumer spending also struggled, with Dollar Tree down 4.7% and Dollar General slipping 1.8% as gasoline prices jumped to $4.14 per gallon in the US.
Crypto-linked stocks weakened alongside Bitcoin, with Coinbase Global down 1% and Strategy losing 2.7%.
However, gains in healthcare stocks helped limit broader losses. Insurers rallied after the Centers for Medicare & Medicaid Services approved a 2.48% rate hike for 2027. UnitedHealth surged 10.5%, while Humana jumped 9.2%.
Meanwhile, Universal Music Group shares rose 11.4% after billionaire Bill Ackman proposed a takeover bid for the company.
Gold, silver and other metals
Meanwhile, gold prices drifted higher on Tuesday. Spot gold was up 0.8% at $4,684.59 per ounce by 2:33 p.m. ET (1833 GMT). US gold futures settled unchanged at $4,684.70.
"The gold market is treading water ahead of this evening's US-imposed 8 PM Eastern Time deadline. It is on hold as traders wait to see what happens, as the event could be impactful," Jim Wyckoff, senior analyst at Kitco Metals, said according to Reuters.
Spot silver dipped 1% to $72.03 per ounce, platinum shed 2% to $1,939.15, and palladium fell 2% to $1,455.63.
What next for markets?
Until there is clarity on the geopolitical front, Wall Street is likely to remain volatile, with oil prices and inflation risks, an expert added.
“Even if tensions ease, normalization will trail, leaving upside risk to prices and potential product shortages,” Salih Yilmaz, Bloomberg Intelligence senior industry analyst, wrote.
