Oil Surges To $115, Stocks Slide As Trump Deadline Looms: What's Moving Markets Tuesday?

U.S. equities edged lower on Tuesday as escalating military action in the Middle East and surging oil prices kept investors on the defensive. 

President Donald Trump stated that “a whole civilization will die tonight, never to be brought back again,” warning that unless Iran’s leadership agrees to a deal that includes reopening the Strait of Hormuz by 8 p.m. Eastern Time, the U.S. could target key Iranian infrastructure, including power plants and bridges.

WTI crude oil climbed 2.2% to $115 a barrel, reaching levels last seen on March 9 and eyeing the highest closing price since June 2022.

Across U.S. equity markets by midday Tuesday, losses were broad-based, with 9 of 11 S&P 500 sectors trading in negative territory.

The S&P 500 fell 0.5% to 6,581, down roughly 30 points on the session. The Dow Jones Industrial Average shed 235 points, or 0.5%, to 46,435.

The Nasdaq 100 dropped 0.7% to 24,028. Within the Magnificent Seven stocks, Tesla Inc. (NASDAQ:TSLA) fell 3.6%, Apple Inc. (NASDAQ:AAPL) slid 3.8%, and Meta Platforms Inc. (NASDAQ:META) declined 1.0%. Nvidia Corp. (NASDAQ:NVDA) edged down 1.4%, while Microsoft Corp. (NASDAQ:MSFT) fell 0.8%.

The Russell 2000 fell 0.5% to 2,529. Gold held steady at $4,657 an ounce, up 0.1% on the day.

In the bond market, the yield on the U.S. 10-year Treasury note edged up 1 basis point to 4.354%. The 30-year yield rose to 4.92%, while the 2-year held steady at 3.86%. Markets have fully priced in the Federal Reserve’s decision to keep the federal funds rate unchanged at its meeting later this month, with borrowing costs expected to remain steady through the rest of the year.

Tuesday’s Performance In Major US Indices

According to the Benzinga Pro platform:

• The Vanguard S&P 500 ETF (NYSE:VOO) fell 0.5%.
• The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) slid 0.5%.
• The Invesco QQQ Trust (NASDAQ:QQQ) declined 0.7%.
• The iShares Russell 2000 ETF (NYSE:IWM) dropped 0.5%.

Energy Leads, Health Insurers Jump

• The Energy Select Sector SPDR Fund (NYSE:XLE) was the session’s top performer, rising 1.0% as crude oil prices continued their march higher.
• The Utilities Select Sector SPDR Fund (NYSE:XLU) gained 0.4%
• The Health Care Select Sector SPDR Fund (NYSE:XLV) traded roughly flat.

Managed-care stocks rallied after CMS finalized a 2.48% payment increase for Medicare Advantage plans in 2027, a sharp reversal from its initial January proposal of a near-flat 0.09% hike that injects an estimated $13 billion in additional funding into the sector. 

UnitedHealth Inc. (NYSE:UNH) surged 10.4% to lead the Russell 1000 alongside Humana Inc. (NYSE:HUM), which rallied 8.3%, and CVS Health Corp. (NYSE:CVS), up 7%.

At the other end, the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) was the worst-performing sector, falling 1.7%, weighed down by Tesla and Nike. The Consumer Staples Select Sector SPDR Fund (NYSE:XLP) fell 1.1%, and the Technology Select Sector SPDR Fund (NYSE:XLK) dropped 0.6% as megacap tech names pulled the sector lower.

Among industry ETFs, the iShares U.S. Home Construction ETF (BATS:ITB) tumbled 2.6% as rising yields and inflation fears weighed on rate-sensitive housing names. The Invesco WilderHill Clean Energy ETF (NYSE:PBW) dropped 2.6%, while the U.S. Global Jets ETF (NYSE:JETS) fell 1.7% as elevated jet fuel costs pressured airline stocks.

Tuesday’s Russell 1000 Top Gainers

Tuesday’s Russell 1000 Top Losers

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