Wall Street ended lower on Tuesday as investors digested Fed chair nominee Kevin Warsh’s confirmation hearing and a major leadership shake-up at Apple, even as uncertainty around US-Iran negotiations kept sentiment fragile ahead of a looming ceasefire deadline.
The Dow Jones Industrial Average fell 293 points, or 0.6%. The S&P 500 and the Nasdaq Composite also declined 0.6% each, extending their losses for a second straight session as risk appetite weakened.
Warsh signalled that tensions between the White House and the Federal Reserve could ease, while firmly pushing back against concerns over political influence, saying he would not act at the president’s behest.
At the same time, markets weighed Apple’s announcement that longtime CEO Tim Cook will step down, with hardware chief John Ternus set to take over, marking a significant transition at the tech giant.
The cautious mood followed reports that Vice President JD Vance’s planned trip to Iran talks was paused amid a lack of commitment from Tehran, casting fresh doubt over the progress of negotiations. The development comes just a day before the ceasefire deadline, with little clarity on whether an agreement will be reached in time.
US President Donald Trump struck a mixed tone, saying he still expects a “great deal” with Iran, while warning that Washington is prepared for military action if no agreement is finalised. He also accused Iran of violating the ceasefire multiple times, signalling rising tensions despite ongoing diplomatic efforts.
Oil markets reacted sharply to the uncertainty, reversing recent declines. West Texas Intermediate crude rose 2.81% to settle at $92.13 per barrel, while Brent crude gained 3.14% to close at $98.48, as traders priced in potential supply disruptions.
The latest weakness comes after a strong run for equities, with markets having recently touched record highs on optimism around a possible end to the Iran conflict. That momentum has begun to fade as geopolitical risks resurface and investors reassess the likelihood of a swift resolution.
Despite the near-term volatility, underlying sentiment remains supported by strong corporate fundamentals. Earnings growth and resilient revenues continue to provide a cushion, limiting the downside even as macro uncertainties persist.
On the stock-specific front, UnitedHealth surged over 8% after reporting better-than-expected quarterly results and raising its outlook. Amazon shares also advanced more than 1% after announcing plans to invest up to $25 billion in artificial intelligence startup Anthropic, signalling continued momentum in AI-led spending.
