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 lost 1,238 points, or 2.5%. If that holds, it would mark the blue-chip index’s first 1,000-point decline since April 10, 2025. The S&P 500 slipped 2.2%, while the Nasdaq Composite was down 2.3%.
Brent crude oil, the international benchmark, topped $84 a barrel, up 8% Tuesday following a 6% spike Monday. WTI crude jumped 8% to above $77 a barrel after a 6% jump as well on Monday.
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.
There were other signs of the conflict deepening as it enters its fourth day:
- The U.S. embassy in Riyadh, Saudi Arabia’s capital was hit by drones as Iran upped its attacks on the country. The State Department ordered evacuations of personnel from Bahrain, Iraq and Jordan.
- Tehran-backed Hezbollah attacked Tel Aviv with missiles and drones.
- Concerns are growing about how long Gulf states like the UAE can hold off the barrage of Iran missiles and drones with their air defenses.
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.
Stocks staged a massive comeback on Monday, with the S&P 500 and Nasdaq erasing steep losses to close slightly higher. The Dow also closed well off its session lows. Investors, using the historical playbook on Wall Street around geopolitical conflicts, bought the dip on the notion the conflict would soon be resolved and not impact the economy.
“After initially taking the Middle East war in stride on Monday, market anxiety ratcheted higher overnight amid concerns that a decapitated and leader-less Iranian government and military will execute a prolonged retaliatory response aimed at sowing chaos throughout the region by targeting key economic and energy infrastructure for weeks to come,” said Adam Crisafulli of Vital Knowledge in a note. “While the US and Israeli militaries have complete dominance in the region, they can’t knock out every cheap missile and drone fired off by Iran, especially since interceptor stockpiles are rapidly depleting.”
But energy prices jumped again overnight as the conflict widened. Perhaps more concerning is the surge in European natural gas prices after Iran knocked out Qatar’s LNG production. European natural gas futures have surged more than 70% in two days.
“Energy prices are surging further (especially European gas), placing upward pressure on global borrowing costs,” added Crisafulli.
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.
There were little places to hide Tuesday with gold prices also lower after Monday gains. The CBOE Volatility index, Wall Street’s fear gauge, jumped to its highest levels since November.
Memory stocks under pressure
Shares of memory names were down sharply in early trading Tuesday amid the broader sell-off.
Seagate declined more than 7%. Micron and Western Digital were off by more than 8%. Sandisk fell more than 9%.
Memory stocks have been among the best performers for 2026 thanks to a shortage driven by the artificial intelligence buildout. Sandisk has already doubled in the year, the best performer in the S&P 500.
Semiconductor equipment companies like Applied Materials, Lam Research, KLA and ASML were also all down more than 6%.
— Davis Giangiulio
Cruise stocks down for second day
Shares of cruise operators fell for the second day as concerns over the U.S.-Iran conflict continued.
Carnival tumbled nearly 6% in midday trading, after closing down 7.6% on Monday. Royal Caribbean shed 3.6%, following its 3.3% loss in the prior session.
Norwegian Cruise Lines dropped about 6%, adding to the 10.5% loss in the prior session. On Monday, Norwegian issued weaker-than-expected earnings guidance for the full year.
Viking, which reported a fourth-quarter earnings and revenue beat on Tuesday, also slipped 2%. The river cruise company said it is pausing Egypt voyages through Mar 31.
— Michelle Fox, Contessa Brewer
NYSE decliners lead advancers 17-1
Decliners had the upper hand at the New York Stock Exchange on Tuesday, far outpacing advancers.
For every one advancing name at the NYSE, there were more than 17 that traded lower, FactSet data shows. Overall, 2,493 stocks fell, while just 142 advanced.
— Fred Imbert
MongoDB latest casualty in software fears
Shares of MongoDB collapsed 28% in early trading Tuesday following its fourth-quarter earnings report.
The software company reported an earnings and revenue beat, though its earnings guidance for the current quarter and revenue outlook for the fiscal year were worse-than-expected.
MongoDB also announced its president of field operations, Cedric Pech, and chief revenue officer, Paul Capombassis, are leaving the company. While it said the transition was planned, it was decided now was the right moment for the departures.
Baird downgraded the stock in a Tuesday note to neutral from buy, with concerns over the growth from its cloud database platform and lack of artificial intelligence contributions to its revenues. MongoDB is now off more than 40% in 2026 as the software sector has fallen over investor concerns that AI will disrupt the software-as-a-service business model.
— Davis Giangiulio
Oil prices jump
Stocks fall on Tuesday
The three major averages plummeted on Tuesday morning.
The Dow Jones Industrial Average lost 902 points, or 1.8%. The S&P 500 slipped 1.5%, while the Nasdaq Composite was down 1.8%.
— Sean Conlon
Target, Best Buy, On Holding among the stocks making premarket moves
Check out the companies making headlines before the bell:
- Target — The big box retailer jumped more than 3% on better-than-expected earnings for the fourth quarter. Target earned an adjusted $2.44 per share, which topped the $2.16 per share analysts polled by LSEG were anticipating. Revenue of $30.45 billion came in just below consensus.
- Best Buy — The electronics retailer rallied more than 9% after Best Buy posted adjusted per-share earnings of $2.61 in the fourth quarter, better than the earnings of $2.47 per share analysts polled by LSEG were anticipating. Revenue of $13.81 billion fell short of the consensus estimate of $13.88 billion.
- On Holding — The Swiss sneaker maker dropped nearly 10% after its 2026 guidance disappointed investors. On Holding expects net sales to grow by at least 23% in constant currencies, which, at spot rates, implies sales of at least 3.44 billion Swiss francs. That is short of the consensus estimate of 3.7 billion francs. However, the company reported record sales and improved profitability for 2025 and its fourth-quarter net sales topped expectations.
Read the full list here.
— Sarah Min
Tech selling resumes after Monday comeback
Investors resumed selling technology stocks on Tuesday, a day after the sector led Monday’s intraday comeback.
The State Street Technology Select Sector SPDR ETF (XLK) was last trading 2% lower on Tuesday. The exchange-traded fund ended Monday less than 1% higher.
Investors bought into the bull market’s tech leaders on Monday such as Nvidia and Microsoft. These tech giants are flush with cash, making them more resilient to potential fallouts from the Middle East conflict.
— Lisa Kailai Han
The latest on the U.S.-Iran conflict
The U.S. war with Iran is intensifying as the conflict enters a fourth day. Here’s some of the latest headlines:
- The U.S. embassy Riyadh, the capital of Saudi Arabia, was hit by drones.
- U.S. military leaders said more forces are headed to the region, but declined to share how long they expected the conflict would last.
- Oil supertanker rates hit record highs with Iran pledging to close the Strait of Hormuz.
Click here to follow live updates.
— Alex Harring
Pinterest shares jump after Elliott Management takes stake
Pinterest‘s stock jumped 8% after Elliott Investment Management made a $1 billion investment in the social media company.
The company said it plans to use the investment to buy back stock as part of a $3.5 billion share repurchase program approved by the board.
“Elliott’s investment is a strong vote of confidence in the work we have done to build our business and the significant opportunities ahead for Pinterest,” said CEO Bill Ready in a release. Read more.
— Samantha Subin
Blackstone shares fall 5% amid investor outflows
Shares of Blackstone tumbled 5% in premarket trading Tuesday after the firm’s main private credit fund recorded $1.7 billion in net outflows during the first quarter as investors pulled back from the asset class, the Financial Times reported.
Withdrawal requests at the $82 billion Blackstone private credit fund, known as Bcred, climbed to 7.9% of assets in the quarter, surpassing the 5% limit that permits the firm to restrict redemptions for exiting investors, the newspaper said.
Investors have been pulling back from private credit amid a broad tech and software selloff fueled by fears of AI disruption. Meanwhile, there are also concerns that higher interest rates and a slowing economy could strain borrowers and lift default rates.
— Yun Li
South Korea memory stocks tank
Memory chip stocks in South Korea tumbled Tuesday following their massive gains this year on artificial-intelligence related demand.
Shares of Samsung Electronics and SK Hynix weighed down South Korea’s Kospi Index, which saw its worst day in 19 months. It closed down 7% Tuesday.
The iShares MSCI South Korea ETF was down 10% in premarket trading.
— Michelle Fox
VIX crosses 25
The CBOE Volatility Index crossed 25 on Tuesday, jumping to its highest levels since November.
As of 7:54 a.m., the index rose 3.71 points to 25.16. The jump comes amid worries the U.S.-Iran war will last longer than investors previously thought.
— Davis Giangiulio
Target earnings beat expectations, shares rise
Target rose more than 3% in the premarket on better-than-expected earnings for the fourth quarter.
The retailer earned an adjusted $2.44 per share, beating an LSEG forecast of $2.16 per share. Revenue of $30.45 billion was just below the consensus.
Target said sales and traffic increased in the last two months of the holiday quarter, adding that sales turned positive year on year in January. This is “important milestone on our path back to growth this year,” CEO Michael Fiddelke said in a statement.
— Melissa Repko
Dollar rises as global risk appetite plummets
The U.S. dollar edged higher on Tuesday morning, building on gains seen the previous day as investors weighed the impact and potential duration of the U.S.-Iran war.
As the war entered its fourth day, the U.S. dollar index — which measures the greenback against a basket of major currencies — was almost 1% higher.
A broad de-dollarization trend has dented the value of the dollar over the past year, with the dollar index losing more than 7% over the last 12 months. Historically, the dollar — the world’s reserve currency — has been widely viewed as a stable asset.
“A market that had jumped into the “de-dollarisation” trend in substantial ways can get caught out quickly when you reintroduce a terms-of-trade shock,” strategists at Mizuho EMEA said in a note this morning.
“You start to see a scramble for USD liquidity — not because people suddenly love the dollar, but because in stress the world still settles in USD, funds in USD, hedges in USD and ultimately buys energy in USD (with the US now a net-exporter too),” they added. “We’ve spent the past year watching FX correlations fly out the window thanks to the de-dollarization narrative, well this is the kind of moment that snaps it all back.”
— Chloe Taylor
Oil prices spike
Oil prices rose further on Tuesday, as missile strikes across the Middle East continued and Iran reportedly closed the Strait of Hormuz, a shipping route critical to the global transportation of oil and other goods.
At 5 a.m. ET, global benchmark Brent crude oil futures jumped 5.4% to $81.96, touching a 1-year high after gaining more than 7% on Monday.
Front-month West Texas Intermediate oil futures were 5.8% higher at around $75.55, touching on their highest prices since mid-2025.
— Chloe Taylor
European stocks sharply lower as Middle East conflict intensifies
European stocks traded sharply lower on Tuesday, as the intensifying conflict in the Middle East continued to weigh on global investor sentiment.
By 9:35 a.m. in London (4:35 a.m. ET), the pan-European Stoxx 600 was 2.7% lower, extending Monday’s steep losses that saw the index close down 1.6%.
On Tuesday morning, stocks across sectors were being sold off, with bank shares down 3.8%, insurance stocks, down 4.2%, and mining stocks, down 3.9%, leading losses. Even the Stoxx Aerospace and Defense index, home to the region’s biggest defense primes, shed 2.5% after ending Monday’s session in positive territory.
— Chloe Taylor
South Korea’s Kospi sees worst day in 19 months amid broader decline in Asia markets
South Korea’s Kospi fell 7.24% on Tuesday, leading losses in Asia markets, and recording its largest fall in 19 months.
Heavyweight Samsung Electronics lost almost 10%, while counterpart SK Hynix shed 11.5%.
Japan’s Nikkei 225 dropped 3.06%, weighed down by consumer cyclicals, to 56,279.1 while the Topix dipped 3.24% to 3,772.17.
Hong Kong’s Hang Seng index was down 1.25% in its final hour, while mainland China’s CSI 300 fell 1.54% to end at 4,655.9.
Australia’s S&P/ASX 200 dropped 1.34% to finish at 9,077.3, after being one of the few markets on Monday to have recorded a marginal gain.
— Lim Hui Jie
South Korea’s Kospi leads losses as Asia markets as Iran conflict rages on
Markets in Asia mostly fell as the conflict in Iran entered its fourth day, with South Korea’s Kospi tumbling more than 5% as trading resumed after a public holiday.
While the index suffered losses, defense players saw massive gains, with some stocks up over 20%.
Japan’s Nikkei 225 extended losses from the prior session to drop 2.49%, weighed down by energy and consumer cyclicals, while the Topix fell 2.47%.
Hong Kong Hang Seng index was down 0.29%, while mainland China’s CSI 300 was also 0.24% lower.
Australia’s S&P/ASX 200 was down 1.24%, after being one of the few markets on Monday to record a marginal gain.
— Lim Hui Jie
South Korea defense stocks soar as traders react to Iran war
South Korean defense stocks saw massive gains on Tuesday after the country’s markets returned from a public holiday, as the Iran war fuels interest in defense names globally.
Heavyweight Hanwha Aerospace, which is South Korea’s largest defense manufacturer, saw shares surge 22%, while Korea Aerospace Industries gained more than 7%.
Shares in Lignex1, maker of South Korean air defense systems, soared 30%, while Victek and Firstec, which make electronic warfare systems and anti-aircraft missile components, respectively, rose more than 20%.
— Lim Hui Jie
How high can oil and gas prices go as the U.S.-Iran war continues?
The global oil market is facing a worst-case scenario as the U.S. war with Iran engulfs the Middle East with no clear off ramp, increasing the risk of a prolonged supply disruption that could slow the global economy.
Tanker traffic through the Strait of Hormuz, the world’s most important chokepoint for oil shipments, has come to a standstill as ship owners take precautionary measures. About a third of the world’s total seaborne oil exports passed through the Strait in 2025, according to energy consulting firm Kpler.
At one point, crude oil prices surged more than 12% earlier Monday. European natural gas futures soared more than 40%. Prices could rise higher still depending on how long the war lasts and whether Iran targets Persian Gulf energy infrastructure.
Drivers in the U.S. will likely see gasoline prices start to rise today or tomorrow, said Patrick De Haan, head of petroleum analysis at GasBuddy. Motorists should expect an average 10- to 30-cent per gallon increase at the pump over the next week, De Haan said. Read more on how high can oil and gas prices can go amid the war here.
— Spencer Kimball
MongoDB, Plug Power, Credo Technology among stocks moving in late Monday trading
Check out the companies making headlines in after-hours trading.
- MongoDB — Shares plunged 23% in extended trading. MongoDB said it sees first-quarter adjusted earnings per share of between $1.15 and $1.19 and revenue of between $659 million and $664 million. Analysts polled by LSEG expected earnings of $1.21 per share and $662 million in revenue for the first quarter.
- Asana — Shares of the enterprise work management software platform dropped more than 1% after the company issued disappointing guidance. Asana, which beat fourth-quarter expectations on top and bottom lines, said it expects first-quarter revenue to come out between $202.5 million and $204.5 million, while analysts polled by LSEG expected $204 million. The company also guided full-year revenues between $850 million and $858 million, compared to the estimated $857 million.
- Plug Power — Plug Power reported strong sales in its fourth quarter, leading shares to jump more than 7%. Plug Power posted an adjusted loss of 6 cents per share for the period, better than the 10 cents per share loss analysts polled by LSEG were calling for. The company’s revenue of $225 million was also higher than the $218 million expected.
For the full list, read here.
— Pia Singh
