US Stocks Drop on Middle East Escalation

2026-04-07 13:38 By Andre Joaquim 1 min. read

US equity indices edged lower on Tuesday as escalating geopolitical tensions drove global markets to limit their positions on equities.

The S&P 500, Dow, and Nasdaq 100 were around 0.5% down.

Reports of US strikes in Iran's Kharg Island escalated the conflict ahead of the possibility of attacks on Iran threatened by President Trump, while Tehran continued to impede outflows of tankers from the Hormuz chokepoint.

Tech stocks were sharply lower as the pressure on risk sentiment dented demand for speculative sectors, with Nvidia, AMD, and Micron dropping around 1%, while Tesla fell over 2%.

In the meantime, inflationary concerns following another session of higher oil prices hurt lenders, with JPMorgan and Bank of America each losing more than 0.5%.

In turn, Broadcom jumped over 1.5% after announcing a long-term agreement with Alphabet to supply TPUs.



News Stream
US Stocks Extend Losses
US stocks fell further on Tuesday as escalating tension in the Middle East magnified concerns of a global energy shock. The S&P 500, the Dow, and the Nasdaq 100 fell up to 1% before trimming losses. President Trump escalated threats against Iran to signal aggressive attacks incoming overnight, prompting Tehran to say they cut communication channels and dimming hopes of a deal between both countries. Tehran continued to impede outflows of tankers from the Hormuz chokepoint. Tech stocks were sharply lower as the pressure on risk sentiment dented demand for speculative sectors, with Nvidia, AMD, and Micron dropping around 1%, while Tesla fell over 3%. Meanwhile, Apple slipped 4% on reports from Nikkei that the company sees setbacks in the testing phase of a foldable iPhone. On the other hand, Broadcom jumped 4.5% after announcing a long-term agreement with Alphabet to supply TPUs. Also, Intel gained 3% on reports it may sign a deal with xAI for the development of semiconductors.
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US Stocks Drop on Middle East Escalation
US equity indices edged lower on Tuesday as escalating geopolitical tensions drove global markets to limit their positions on equities. The S&P 500, Dow, and Nasdaq 100 were around 0.5% down. Reports of US strikes in Iran's Kharg Island escalated the conflict ahead of the possibility of attacks on Iran threatened by President Trump, while Tehran continued to impede outflows of tankers from the Hormuz chokepoint. Tech stocks were sharply lower as the pressure on risk sentiment dented demand for speculative sectors, with Nvidia, AMD, and Micron dropping around 1%, while Tesla fell over 2%. In the meantime, inflationary concerns following another session of higher oil prices hurt lenders, with JPMorgan and Bank of America each losing more than 0.5%. In turn, Broadcom jumped over 1.5% after announcing a long-term agreement with Alphabet to supply TPUs.
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