U.S. equities tumbled on Tuesday, undoing a Monday equity comeback, as oil prices spiked again and traders began to worry the U.S.-Iran conflict could drag on longer than anticipated.
The Dow Jones Industrial Average tumbled 1,165.9 points, or 2.4%, to 47,738.88. If that holds, it would mark the blue-chip index’s first 1,000-point decline since April 10, 2025.
The S&P 500 slumped 151.61 points, or 2.2%, to 6,729.60.
The NASDAQ dumped 520.73 points, or 2.3%, to 22,228.58
Iranian Revolutionary Guard commander said the Strait of Hormuz — the world’s most vital transit route for crude oil — is closed and that Iran would set ablaze ships attempting the route, Reuters reported, citing Iranian media.
President Donald Trump has warned that the conflict could continue for more than four weeks.
The jump in energy prices was boosting Treasury yields on fears it may cause inflation to flare back up, just as U.S. investors are banking on more Federal Reserve rate cuts to boost the economy.
Tech stocks, which led the Monday intraday comeback, were lower Tuesday.
Nvidia and Broadcom lost around 2% each. U.S. memory stocks were also under pressure and were poised to follow the notable declines seen in memory chip stocks in South Korea. Most of the stocks in the S&P 500 were in the red except for oil and energy stocks.
Additionally, shares of Blackstone fell 7% after the Financial Times reported that its private credit fund saw $1.7 billion in net outflows in the first quarter.
Prices for the 10-year Treasury weakened, hiking yields to 4.07% from Monday’s 4.04%. Treasury prices and yields move in opposite directions.
Oil prices resumed their surge, tacking on $5.60 to $76.83 U.S. a barrel.
Gold prices fell back $249.60 to $5,062.00 U.S. an ounce.
