Major U.S. stock indices opened higher but closed lower on Tuesday, with losses accelerating toward the end of the trading session. The U.S. President stated on Truth Social that, following requests from Pakistan's Army Chief and Prime Minister, the United States would temporarily postpone military action against Iran and extend the ceasefire period. He called on Iran to first present a unified negotiation proposal. During this period, the U.S. military will continue its maritime blockade against Iran while remaining on high alert. He indicated that the ceasefire would persist until Iran submits its proposal and negotiations conclude, "regardless of the outcome."
In U.S. markets, the Dow Jones Industrial Average fell by 293.18 points, or 0.59%, to close at 49,149.38. The Nasdaq Composite dropped 144.43 points, or 0.59%, ending at 24,259.96. The S&P 500 declined by 45.13 points, or 0.63%, finishing at 7,064.01. Most major technology stocks declined, with Apple (AAPL.US) falling more than 2.5%. NVIDIA (NVDA.US), Alphabet (GOOG.US), and Tesla (TSLA.US) each dropped over 1%.
In European markets, Germany's DAX 30 index decreased by 202.01 points, or 0.83%, closing at 24,242.32. The UK's FTSE 100 fell 118.35 points, or 1.12%, to 10,490.73. France's CAC 40 lost 95.33 points, or 1.14%, ending at 8,235.72. The Euro Stoxx 50 declined by 61.17 points, or 1.02%, to 5,921.46. Spain's IBEX 35 dropped 136.65 points, or 0.75%, closing at 18,124.25. Italy's FTSE MIB decreased by 325.52 points, or 0.68%, finishing at 47,881.50.
In Asian markets, Japan's Nikkei 225 rose by 0.89%, while South Korea's KOSPI index gained 2.72%.
In cryptocurrencies, Bitcoin edged down 0.64% to $75,490. Ethereum declined slightly by 0.32% to $2,312.17.
The U.S. dollar index, which measures the dollar against a basket of six major currencies, increased by 0.3%, settling at 98.393. By the close of New York forex trading, one euro traded at $1.1744, down from $1.1782 the previous day. One British pound was at $1.3508, lower than $1.3536. One U.S. dollar bought 159.35 Japanese yen, up from 158.87, and 0.7808 Swiss francs, up from 0.7786. It also exchanged for 1.366 Canadian dollars, up from 1.3643, and 9.1746 Swedish krona, up from 9.1269.
In oil markets, West Texas Intermediate crude for June delivery rose by $2.25 to settle at $91.86 per barrel, a gain of 2.51%. Brent crude for June delivery increased by $3.00 to close at $98.48 per barrel, up 3.14%. Both benchmarks experienced volatile trading between 3:35 and 4:10 Beijing Time, swinging over a $4 range in an n-shaped pattern. Prices initially rose on news that U.S. and Iranian representatives had canceled their trip to Pakistan, then erased gains after the U.S. President announced the ceasefire extension.
In precious metals, spot gold fell significantly, closing at $4,718.76 per ounce. Spot silver was at $76.68 per ounce.
On the macroeconomic front, the Pakistani Prime Minister stated that efforts would continue to facilitate the resumption of U.S.-Iran talks and reach an agreement. Following the U.S. President's announcement extending the ceasefire with Iran while maintaining the blockade, the Prime Minister expressed gratitude for the decision, which allows ongoing mediation efforts to proceed smoothly. He affirmed Pakistan's commitment to sincere efforts for a negotiated resolution, expressing hope that the ceasefire would hold and lead to a comprehensive "peace agreement" during the second round of talks scheduled in Islamabad to permanently end the conflict.
Sources indicated that Iran would not participate in the U.S.-Iran talks scheduled for the 22nd. Iran's negotiation team informed the U.S. via Pakistani intermediaries that they would not travel to Islamabad and currently see no possibility of joining the talks. Sources noted that after Pakistan's mediation and the U.S. ceasefire agreement, Iran accepted the ceasefire and agreed to subsequent negotiations based on a ten-point framework it proposed, which the U.S. had accepted. Pakistan had announced U.S. acceptance of this framework. However, the U.S. subsequently began reneging on its commitments. Furthermore, during the first round of talks in Islamabad, the U.S. made excessive demands that violated the original framework, leading to a stalemate. Sources added that in recent communications, the U.S. persisted with demands that infringe on the fundamental rights of the Iranian people, with no substantive progress made. Consequently, Iran determined that participating under these conditions would be futile, as the U.S. is obstructing any meaningful agreement.
A Federal Reserve Chair nominee suggested the Fed should gradually reduce its reliance on forward guidance, warning that excessive transparency could impair policy flexibility when circumstances change. He argued that the Fed's prolonged adherence to its projections, related to its delayed response to the 2021-2022 inflation surge, highlights the issue. He believes reducing commitments would allow for more flexible decision-making, enabling a gradual assessment process that avoids persistent central bank errors. He views this as part of a broader reform agenda and expressed eagerness to implement these changes if confirmed.
The U.S. SEC Chair stated that progress is being made to establish a regulatory framework for digital assets and introduced an "A-C-T" strategy. In a speech, he noted that under his leadership, the SEC has refocused on its core mission of protecting investors, maintaining fair markets, and facilitating capital formation, while criticizing past regulatory overreach that increased market friction and uncertainty. He added that the SEC is accelerating efforts to create a clear regulatory foundation for digital assets in collaboration with other regulators and Congress. The "A-C-T" strategy involves Advancing regulatory modernization, Clarifying regulatory boundaries, and Transforming the rulebook based on core principles to enhance U.S. market competitiveness and solidify its status as a global investment hub.
In corporate news, United Airlines (UAL.US) lowered its profit forecast due to soaring fuel costs. The airline's second-quarter and full-year profit outlook was clouded by rising fuel prices, despite strong demand for premium travel. The Chicago-based carrier expects adjusted second-quarter earnings per share between $1 and $2, and full-year EPS between $7 and $11. Based on April 17 data, it anticipates fuel costs of approximately $4.30 per gallon this quarter, highlighting pressure from rising energy costs. The airline expects to recover only 40% to 50% of the increased fuel costs through fares and other measures in the second quarter, improving to 70%-80% in the third quarter, and reaching 85%-100% by the fourth quarter.
Adobe (ADBE.US) announced a $25 billion stock repurchase program following a decline in its share price, which has been impacted by anxiety over AI disruption. The company's CFO stated that the new repurchase authorization reflects confidence in strong cash flow and commitment to creating long-term shareholder value. The stock has declined 29% year-to-date. This new authorization follows the near completion of another $25 billion repurchase plan announced in March 2024.
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