The S&P 500 slid on Tuesday as oil prices moved higher, with investors awaiting further developments in the Middle East ahead of a ceasefire that’s set to expire Wednesday.
The broad market index fell 0.3%, while the Nasdaq Composite dropped 0.1%. The Dow Jones Industrial Average shed 108 points, or 0.2%.
President Donald Trump told CNBC Tuesday that he expects the U.S. and Iran to make a “great deal.” The president added, however, that the U.S. military is “ready” to bomb Iran if a deal is not signed by the ceasefire deadline and that he does not want to extend it.
This comes after Trump said earlier Tuesday in a Truth Social post that Iran “Violated the Cease Fire numerous times!”
Oil prices reversed course from a big decline in recent days in anticipation of a deal. West Texas Intermediate futures increased 4% to above $93 per barrel. Brent futures advanced 2% to trade above $98 a barrel.
“As confidence begins to come back around that traffic will normalize, then the commodity prices will also,” said Brian Mulberry, Zacks Investment Management chief market strategist. “We expect that the critical piece of it, which is control over the [Strait of Hormuz], will absolutely be resolved by the end of this week.”
There was a brief jump in traffic of commercial ships through the strait over the weekend that then slowed again following a number of vessel attacks, to be sure.
The major averages slipped on Monday with traders on edge ahead of the ceasefire expiration and momentum slowing a bit on the market comeback. The Nasdaq snapped its longest winning streak since 1992 of 13 days.
In the prior trading week, the S&P 500 and Nasdaq notched multiple all-time intraday and closing highs on hopes for an end to the Iran war in the near future. Notably, the former finished above 7,100 for the first time ever.
Those on Wall Street, including Mulberry, remain bullish on the broader picture ahead for equities.
“What you’re seeing is a really strong Q1 when it comes to earnings,” he said, noting an anticipated double-digit percentage growth in that area as well as “strong” revenues. “I don’t think that that can be overlooked in this moment in time.”
On Tuesday, UnitedHealth’s first-quarter results surpassed Wall Street’s expectations, which sent shares of the health insurance giant more than 6% higher. The company also hiked its earnings outlook.
Meanwhile, Amazon shares climbed more than 1% on the heels of the company agreeing to invest up to $25 billion in artificial intelligence startup Anthropic.
Buy the dip in Colgate, says Rothschild
Colgate-Palmolive’s more than 16% fall since the start of the U.S.-Iran war is overdone, and it’s time for investors to get in the stock, according to Rothschild & Co Redburn.
The bank upgraded its rating on the company to buy from neutral, and hiked its price target to $100, indicating a nearly 20% gain from Monday’s close. While the stock has fallen on fears of weakened demand due to consumers grappling with higher energy prices from the conflict in the Middle East, analyst Edward Lewis thinks that perspective is misguided.
“More than 60%/80% of its sales/organic sales growth (respectively) are generated in regions where we see limited impact from the war,” Lewis wrote in a Tuesday note. “We now expect more pressures on gross margin in FY26/27 given energy prices. However, we see EPS remaining resilient given Colgate’s strong track record on productivity savings.”
Lewis added that while pressure will remain in the U.S., it expects support from growth in Latin America and demand for its pet nutrition brand Hill’s. The stock fell more than 1% Tuesday.
— Davis Giangiulio
Companies taking cautious approach to 2026 despite strong quarterly results
Despite plenty of strong results this morning, companies are clearly opting to remain conservative in their forecasts amid all the macroeconomic and geopolitical uncertainty.
GE Aerospace CEO Larry Culp told CNBC’s Phil Lebeau this morning, “If not for current events, we would have raised guidance, but given the environment it’s prudent to maintain guidance.” That came after the company beat first quarter estimates by a strong 26 cents.
Culp’s company was hardly alone in its cautious approach. Look at some of the other big companies that reported this morning:
3M affirmed full year adjusted EPS guidance – but even after a 16-cent beat
Northrop Grumman also reiterated full year adjusted EPS guidance despite beating by 8 cents
UnitedHealth raised its full year adjusted EPS guidance by 50 cents, but that was after a bigger 66 cent first quarter beat
RTX raised full year adjusted EPS guidance by 10 cents after a far larger 26-cent beat
D.R. Horton cut the high end of its full year revenue and homes closed forecasts, with half of its fiscal year to go
— Robert Hum
Russell rises to new high
The small-cap Russell 2000 reached a new all-time intraday high on Tuesday, a day after the index scored a fresh closing record
The Russell 2000 was last up 0.8%, building on its more than 13% gain this year.
— Sean Conlon
Tough Iran stance, tariff pressure and more from Trump’s interview with CNBC
President Donald Trump said he thinks that the U.S. is “going to end up with a great deal” with Iran to end the war, speaking with CNBC’s “Squawk Box” on Tuesday, and that he does not expect to extend the ceasefire due to expire on Wednesday.
Regarding markets, Trump said he was surprised stocks rebounded during the conflict, and that he’d anticipated a sharper sell-off in the Dow and S&P 500. “I thought they’d be down 20%,” he said. “I thought the oil would be much higher, and I’m very happy to say that it wasn’t.”
On trade policy, he warned that he would “remember” companies that don’t seek tariff refunds, signaling a more aggressive and loyalty-based approach to companies under his tariff system.
He also discussed AI and defense, pointing to a deal involving Anthropic and the Pentagon, following a high profile clash between the AI company and the Pentagon from earlier this year.
For more, watch the full interview here.
— Tanaya Macheel
Retail sales jumped in March on surge in gas prices
Retail spending was stronger than expected in March as soaring gas prices took their toll on consumers’ wallets.
Sales rose 1.7% for the month, stronger than the 0.6% gain in February and higher than the 1.5% Dow Jones consensus estimate, according to Commerce Department figures that are adjusted for seasonality but not inflation. Excluding autos, sales rose 1.9%, compared to the estimate for 1.4%.
The monthly gain was driven largely by a 15.5% increase in receipts at gas stations as prices at the pump soared past $4 a gallon. Furniture and home furnishings saw an increase of 2.2% while online sales rose 1%. Sales accelerated 4% on an annual basis.
The so-called control group, which excludes several items and feeds into the department’s calculations for gross domestic product, increased 0.7%.
— Jeff Cox
Stocks open higher
The three leading U.S. indexes began Tuesday’s session with gains.
The Dow Jones Industrial Average climbed 270 points, or 0.5%. The S&P 500 rose 0.2%, while the Nasdaq Composite advanced 0.3%, respectively.
— Sean Conlon
KeyBanc upgrades CrowdStrike
CrowdStrike should sail higher, even as the limited release of Anthropic’s Mythos tests some investors’ faith in the software name, according to KeyBanc.
The bank upgraded CrowdStrike to overweight from sector weight. It also set a price target of $525 for shares, implying 21.2% upside from Monday’s close.
Earlier this month, Anthropic released an artificial intelligence model with advanced cybersecurity capabilities called Claude Mythos Preview to a limited group of technology companies, including Google and Apple.
That rollout has spooked investors who are concerned that Mythos could disrupt CrowdStrike and other security providers. Cybersecurity stocks initially fell on a Fortune report about Mythos’ development published in late March, although the iShares Cybersecurity ETF is still up more than 6% over the past month.
CNBC Pro subscribers can read more here.
— Liz Napolitano
What to expect from Fed chair nominee Kevin Warsh’s upcoming Senate hearing
Federal Reserve chair nominee Kevin Warsh travels to Capitol Hill on Tuesday to convince lawmakers he can carry out a presidential push for lower interest rates while remaining free of political constraints in setting policy.
In a much-anticipated hearing before the Senate Banking Committee, the former Fed governor will face questioning over a variety of subjects, from monetary policy to banking regulation to his own complicated personal finances
None likely will be more important than establishing the boundaries between the Fed’s decision-making and politics.
“He has a tricky communication question,” said Bill English, a professor at the Yale School of Management and the Fed’s director of monetary affairs from 2010-15, a period that overlapped with Warsh’s time there. Read more.
— Jeff Cox
UnitedHealth, 3M, Amazon among the stocks making premarket moves
Check out the companies making headlines before the bell:
- UnitedHealth — Shares popped more than 6% after UnitedHealth reported first-quarter earnings and revenue that beat analyst expectations. The company earned $7.23 per share, adjusted, on revenue of $11.72 billion. Analysts expected a profit of $6.57 per share on revenue of $109.57 billion. UnitedHealth also hiked its full-year earnings outlook.
- 3M — Shares fell slightly after the manufacturing giant posted lackluster guidance and mixed Q1 results. The company sees earnings per share between $8.50 and $8.70. Analysts polled by FactSet expected guidance around $6.50 per share.
- Amazon — The online retailer popped 3% after Amazon agreed to invest up to $25 billion in Anthropic as part of an expanded agreement to build out AI infrastructure. This comes on top of the $8 billion Amazon has already invested in the artificial intelligence startup in recent years. In turn, Anthropic said in the Monday announcement that it’s committed to spending more than $100 billion on Amazon Web Services technologies over the next 10 years.
Read here for the full list.
— Sarah Min
3M falls on lackluster guidance
Shares of 3M fell slightly in the premarket after the manufacturing giant posted lackluster guidance and mixed Q1 results. The company sees earnings per share between $8.50 and $8.70. Analysts polled by FactSet expected guidance around $6.50 per share.
For the first quarter, adjusted earnings per share of $2.14 beat a FactSet consensus of $1.98, though revenue of $6 billion was in line with expectations.
— Fred Imbert
UnitedHealth posts better-than-expected earnings, hikes outlook
UnitedHealth reported first-quarter earnings and revenue that beat analyst expectations, sending the stock higher by more than 6% in premarket trading.
The company earned $7.23 per share, adjusted, on revenue of $11.72 billion. Analysts expected a profit of $6.57 per share on revenue of $109.57 billion. UnitedHealth also hiked its full-year earnings outlook.
Read more here.
— Fred Imbert
European stocks move higher
European stocks edged into positive territory on Tuesday as investors gauge developments ahead of the expiry deadline for the two-week ceasefire between the U.S. and Iran.
The pan-European Stoxx 600 gained 0.1%, with a majority of sectors in positive territory, while the region’s major bourses were also mainly trading higher by 8:30 a.m. in London (3:30 a.m. E.T.)
Read more here.
— Hugh Leask and Holly Ellyatt
South Korea’s Kospi hits record high as Asia markets mostly rise on peace talk hopes
South Korea’s Kospi hit a record high Tuesday while the broader Asia-Pacific markets traded mixed, amid hopes for a resolution to the Middle East conflict, even as tensions between Iran and the U.S. continue to simmer.
The Kospi ended Tuesday’s session at a record high of 6,388.47, gaining 2.72%, supported by tech stocks. Index heavyweight Samsung Electronics rose 2.1%, while semiconductor manufacturer SK Hynix gained 4.97%. The small-cap Kosdaq index gained 0.36% to 1,179.03.
Japan’s Nikkei 225 gained 0.89% to 59,349.17, while the Topix slipped 0.18% to 3,770.38. Australia’s S&P/ASX 200 ended flat at 8,949.40.
Mainland China’s CSI 300 index rose 0.22% to 4,767.99, while Hong Kong’s Hang Seng index was up 0.35% in its last hour of trade. Victory Giant, one of Nvidia’s printed-circuit-board suppliers, debuted on the Hong Kong Stock Exchange, advancing as much as 60% after raising about HK$20.1 billion ($2.57 billion) in the city’s largest IPO since Zijin Gold last September.
India’s Nifty 50 was 0.70% higher as of 3:50 a.m. ET.
Oil futures pared losses. West Texas Intermediate futures for May delivery was 1.79% lower at $88.01 per barrel as of 3:50 a.m. ET. Brent crude futures for June delivery fell 1.15% to $94.33 per barrel.
— Justina Lee
Asia markets mixed as investors weigh hopes for Iran peace talks against Trump threat of escalation
Asia-Pacific markets were mixed Tuesday, as tensions between Iran and the U.S. continue to simmer amid hopes for a resolution to the Middle East conflict.
South Korea’s Kospi extended early gains to advance 2.11% while the small-cap Kosdaq inched lower. Japan’s Nikkei 225 gained 1.15%, while the Topix was marginally higher. Australia’s S&P/ASX 200 gave up early gains and was down 0.24%.
Mainland China’s CSI300 index was trading 0.21% lower, while Hong Kong’s Hang Seng index gained 0.46%. Victory Giant, one of Nvidia’s printed-circuit-board suppliers, debuted on the Hong Kong Stock Exchange, advancing over 50% of its initial offering of HK$209.88. The company was seeking to raise $2.24 billion in the city’s largest IPO since Zijin Gold last September.
West Texas Intermediate futures for May delivery was 1.51% lower at $88.26 per barrel as of 9:34 p.m. ET. Brent crude futures for June delivery fell 0.48% to $95.01 per barrel.
— Justina Lee
6 of the 11 GICS sectors end Monday higher
On Monday, six of the 11 GICS sectors ended the session higher.
Gains were led by materials stocks, up 0.57%, and followed by financials and real estate stocks, respectively ending 0.34% and 0.27% higher.
On the other hand, communication services stocks lagged, notching a 1.41% loss. The health care and utilities sectors followed, down 0.93% and 0.91%, respectively.
— Lisa Kailai Han
Apple taps longtime insider John Ternus to replace Tim Cook as CEO
Apple has named John Ternus to replace Tim Cook as its CEO, effective Sept. 1. The 65-year-old Cook will become executive chairman, helping with “certain aspects of the company, including engaging with policymakers around the world.”
A longtime insider, Ternus had helmed Apple’s hardware engineering business as senior vice president. With more than two decades at the company, Ternus brings a lot of knowledge of Apple’s core products to the role at a time when Apple needs to adapt to artificial intelligence.
Investors took the end of Cook’s 15-year tenure in stride. Apple shares fell less than 1% on the news.
Year-to-date, Apple stock has underperformed the market, nudging up only 0.4%. Under Cook’s watch, Apple’s market cap increased roughly 24-fold to top $4 trillion.
— Christina Cheddar Berk
Stocks making the biggest moves after the bell: Amazon, Apple and more
These are the stocks moving the most in extended hours trading:
Read the full list of stocks moving here.
— Lisa Kailai Han
Stock futures are little changed
Stock futures opened little changed on Monday night.
Futures tied to all three major averages were trading around flat shortly after 6 p.m. ET.
— Lisa Kailai Han
