![\"US](\"https:\/\/static.toiimg.com\/thumb\/msid-130091254,imgsize-131500,width-400,height-225,resizemode-4\/untitled-design-2026-04-07t212331.jpg\" "\\"<p>File")
<\/div>\n<\/div>\n<\/div>\nFile photo (Picture credit: AP)<\/p>\n
<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n
US stocks fell on Tuesday as investors turned cautious ahead of President Donald Trump\u2019s deadline for Iran to reopen the Strait of Hormuz, with markets on edge over whether the conflict in Middle East could intensify further.Wall Street\u2019s three main indexes were in the red in early trade, dragged lower by technology stocks, while oil prices jumped sharply as fears of wider disruption to crude supplies grew.At 10:08 am ET, the Dow Jones Industrial Average was down 408.87 points, or 0.88 per cent, at 46,261.01, the S&P 500 had fallen 66.46 points, or 0.99 per cent, to 6,546.61, and the Nasdaq Composite was lower by 326.15 points, or 1.45 per cent, at 21,677.16.<\/p>\n The sell-off came as investors closely watched developments in the Iran conflict before Trump\u2019s Tuesday deadline for Tehran to reopen the Strait of Hormuz.A US official said Washington had struck military targets on Iran\u2019s Kharg Island, a key hub for Iranian oil exports. Iran, meanwhile, said it would no longer hold back from targeting infrastructure in Gulf states and warned that the Bab el-Mandeb waterway could also be shut if the crisis spirals further.Trump also escalated the rhetoric on social media, saying \u201ca whole civilization will die tonight\u201d if Iran does not meet the deadline.\u201cThe markets are taking it in stride because they’ve learned not to over-index Trump’s threats, recognizing it’s probably more negotiation than reality,\u201d David Waddell, chief investment strategist at Waddell & Associates, said, as quoted by AFP.Still, market participants remained wary.\u201cWhat you’re seeing with the market reaction is an acknowledgement that an end is not necessarily as close as people had hoped,\u201d Chris Zaccarelli, chief investment officer for Northlight Asset Management, was quoted as saying by Reuters.\u201cThe conflict is more likely to continue with these attacks or increasing rhetoric from both sides … that puts traders back in an uneasy position and expecting a more worse outcome in terms of continuation,\u201d he added.<\/p>\n Technology shares were the biggest drag on Wall Street. The S&P 500 information technology index fell 1.7 per cent, with Apple down 3.8 per cent, making it the biggest weight on all three major indexes.However, some chip stocks offered support. Broadcom rose 3 per cent after signing a long-term agreement with Alphabet\u2019s Google to develop AI chips and other components. Intel also gained 2.2 per cent after saying it would join Elon Musk\u2019s Terafab AI chip complex project alongside SpaceX, Tesla and xAI.Energy stocks moved in the opposite direction, with the S&P 500 energy index rising 1.8 per cent as oil prices surged.<\/p>\n Losses on the Dow were partly cushioned by gains in health insurers after the US government moved to raise payments for Medicare Advantage plans.UnitedHealth jumped 7.7 per cent, while Humana climbed 4.5 per cent and CVS Health gained 3.7 per cent after the US said on Monday it would increase payments to private insurers offering Medicare Advantage plans for older adults, more than the near-flat change proposed earlier.The Centres for Medicare and Medicaid Services said Medicare Advantage payments are likely to see a net average increase of 2.48 per cent in 2027, a figure UBS analysts said was stronger than many investors had expected.<\/p>\n The sharper moves were in the oil market, where traders reacted to the risk of prolonged disruption in the Persian Gulf.Benchmark US crude jumped 3.9 per cent to $116.83 a barrel, while Brent crude rose 0.7 per cent to $110.55. That is well above the roughly $70 level seen before the war began in late February.Iran conflict has complicated the Federal Reserve\u2019s interest rate outlook, as elevated oil prices risk reviving inflation even as the US labour market remains resilient.The concern is that if oil stays high for an extended period, it could trigger another inflation wave and keep borrowing costs elevated.<\/p>\n Tuesday\u2019s decline followed a positive Monday session, when Wall Street\u2019s main indexes closed higher, marking a fourth straight day of gains for the S&P 500 and Nasdaq as investors positioned for the upcoming earnings season.But that optimism faded as the deadline approached and uncertainty returned.\u201cInvestors 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,\u201d Paul Christopher, head of global investment strategy at Wells Fargo Investment Institute, said, as quoted by news agency AP.Market breadth also reflected the nervous mood. Reuters said declining stocks outnumbered gainers by a 2.42-to-1 ratio on the NYSE and by 3.08-to-1 on the Nasdaq. The S&P 500 recorded no new 52-week highs and four new lows, while the Nasdaq logged 26 new highs and 63 new lows.Investors are also expected to watch fresh inflation readings and comments from Federal Reserve officials Austan Goolsbee, Philip Jefferson and Mary Daly later in the day for clues on the policy path.<\/div>\n\nMarkets track war rhetoric ahead of Trump\u2019s deadline<\/h3>\n<\/p>\n
Tech drags, energy rises as sectoral split widens<\/h3>\n<\/p>\n
Health insurers help limit losses<\/h3>\n<\/p>\n
Oil spikes as supply fears dominate sentiment<\/h3>\n<\/p>\n
Volatility likely to persist as investors await clarity<\/h3>\n<\/p>\n