US Stocks Fall as Iran Uncertainty, Bond Selloff and Nvidia Caution Weigh on Markets
U.S. stock markets moved lower on Tuesday as investors reacted to ongoing tensions between Washington and Tehran, renewed pressure in global bond markets and growing caution ahead of Nvidia’s highly anticipated earnings report.
Technology shares led the decline, while rising bond yields and geopolitical uncertainty added pressure across broader markets.
Major US Indexes Trade Lower
By 11:55 ET (15:55 GMT), major U.S. benchmarks posted losses:
- S&P 500: down 0.8% to 7,346.92
- NASDAQ Composite: fell 1.2% to 25,771.98
- Dow Jones Industrial Average: declined 0.4% to 49,471.56
Weakness in technology and semiconductor stocks contributed heavily to the market pullback.
Trump Says He Was Close to Ordering Iran Strike
Geopolitical tensions remained a central market concern after President Donald Trump revealed he had been close to approving military action against Iran.
Trump said he delayed the decision after requests from Gulf region leaders, adding that diplomatic discussions with Tehran may now be progressing.
According to Trump, negotiations could continue for several more days, although he warned that U.S. military options remain available if an agreement is not reached.
Iran Reportedly Sends New Peace Proposal
Iranian state media reported that Tehran submitted a new peace proposal to the United States aimed at ending hostilities across multiple fronts, including Lebanon.
The proposal reportedly includes:
- Ending military confrontations
- Compensation for conflict-related damages
- Removal of sanctions
- Release of frozen Iranian assets
- Withdrawal of U.S. forces from nearby regions
- Ending restrictions affecting Iranian ports
Pakistan reportedly acted as an intermediary between both sides, continuing a diplomatic role it has played throughout the conflict. However, reports indicate the proposal closely resembles terms Trump previously rejected.
Oil Prices Ease but Remain Elevated
Against the backdrop of uncertain negotiations, oil prices declined modestly.
Brent crude futures traded around $110.94 per barrel, though prices remain substantially above pre-conflict levels.
Persistent disruptions surrounding the Strait of Hormuz continue supporting concerns over global energy supplies and inflation risks.
US Treasury Secretary Calls for Action Against Iran’s Financial Networks
U.S. Treasury Secretary Scott Bessent urged international partners to increase pressure on Iran’s financial system.
Bessent stated that the United States has already disrupted billions of dollars linked to Iran’s oil revenues, shadow banking activities and cryptocurrency networks.
He also called on European and Middle Eastern allies to intensify efforts targeting Iranian financing structures and associated organizations.
Nvidia Earnings Become Key Test for the AI Rally
Away from geopolitical developments, investors remained focused on Nvidia’s earnings release scheduled for Wednesday.
Shares of Nvidia headed toward a third consecutive day of declines, dragging semiconductor stocks lower.
The company’s results are viewed as a critical indicator for the broader artificial intelligence trade, which has helped drive U.S. equity markets to record highs in recent months.
Analysts believe Nvidia’s performance and guidance could determine whether enthusiasm around AI stocks remains strong.
Rising Bond Yields Add Pressure to Technology Stocks
Bond markets returned to selling pressure on Tuesday, pushing Treasury yields higher.
The benchmark U.S. 10-year Treasury yield climbed to 4.672%, reaching its highest level since January 2025.
Meanwhile:
- U.S. 30-year Treasury yield rose to 5.176%
- Long-term yields reached levels not seen since 2007
Higher yields often weigh heavily on growth and technology stocks because their valuations depend strongly on future earnings expectations.
Home Depot Gains After Strong Results
Among individual stocks, Home Depot moved higher after reporting stronger-than-expected quarterly results.
Company executives said homeowners continue spending on home improvement projects despite higher fuel prices and economic uncertainty.
Shares rose nearly 1% following the update.
Hims & Hers Falls After Convertible Bond Offering
Meanwhile, Hims & Hers Health declined after announcing a $350 million convertible bond offering due in 2032.
The stock had already dropped sharply following plans to allocate $300 million toward international expansion efforts.
Outlook: Markets Await Clarity on Iran, Inflation and Nvidia
Investors continue balancing several major risks simultaneously:
- Geopolitical uncertainty involving Iran
- Rising bond yields and inflation concerns
- The sustainability of the AI-driven stock rally
- Upcoming corporate earnings, especially from Nvidia
Future market direction may depend heavily on whether tensions ease in the Middle East and whether Nvidia can justify continued optimism surrounding artificial intelligence growth.
