U.S. stocks slipped Tuesday and oil jumped as doubt grew over whether a temporary U.S.-Iran ceasefire would hold. The S&P 500 fell 0.6%, the Dow dropped 293 points and the Nasdaq slipped about 0.6% after Vice President J.D. Vance canceled a planned trip to Pakistan to lead negotiations; President Donald Trump later said he would extend the truce.

Markets wobble as ceasefire talks stall U.S. stocks reversed early gains and finished the day lower after investors reacted to diplomatic moves. The S&P 500 erased an initial rise to finish down roughly 0.6%. The Dow Jones Industrial Average fell 293 points, about 0.6%, and the Nasdaq Composite lost about 0.6%. Trading was choppy, with oil also swinging sharply as traders priced in the risk that the conflict could tighten supplies. Political developments drove the day’s sharp shift. Vice President J.D. Vance called off a trip to Pakistan, where he was to lead U.S. negotiators in talks to extend a two-week ceasefire, raising immediate concerns about whether the temporary halt in hostilities would survive beyond its scheduled expiry. Less than 10 minutes after the market closed, President Donald Trump announced he would extend the ceasefire to give Iran time to submit a proposal to end the war. That announcement arrived too late to reverse intraday losses but helped cap the selling and underscored how closely markets are watching political signals. Oil price moves and the Strait of Hormuz risk Energy prices were a major driver of volatility. Brent crude fluctuated between roughly $95 and $100 a barrel during the trading day and settled at $98.48, up about 3.1%. Traders are focused on the Strait of Hormuz, the narrow waterway that routes a large share of Persian Gulf oil to global markets. A prolonged closure or sustained attacks on shipping would keep crude bottled up in the region and push global prices higher. Higher oil costs feed into U.S. inflation via gasoline prices and transport costs. An Oxford Economics study cited in reporting suggests inflationary pressure from a Middle East conflict could linger for two to three years after the fighting ends — a timeline that would matter for Federal Reserve policy and corporate margins if sustained. Corporate earnings provide partial support Despite the geopolitical jitters, several large companies reported stronger-than-expected results that helped limit losses: - UnitedHealth Group: jumped roughly 7% after reporting better profit for the latest quarter and raising its full-year 2026 earnings forecast. - Quest Diagnostics: climbed about 4.4% after beating estimates and lifting its profit outlook. - Amazon: gained about 0.7% after Anthropic said it would commit more than $100 billion over the next decade to Amazon Web Services to train and run its Claude chatbot. Those gains pointed to a broader reality under Wall Street’s surface: corporate profits remain a major anchor for stock prices. Brian Jacobsen, chief economic strategist at Annex Wealth Management, said the economic hit depends on the conflict's duration — the longer the disruption, the more likely oil-driven costs and supply interruptions will erode corporate margins and consumer spending. Why stocks have held up — and what could change Even with the day’s decline, the U.S. market has held near recent record highs. Several structural forces have supported equities: a strong start to earnings season, policy moves that analysts say are tailwinds for corporate profits, and continued concentration of gains among the biggest tech names.

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Trump's announcement to extend the ceasefire came less than 10 minutes after markets closed.

This article was created with AI assistance.