Wall Street staged a late-session recovery on Tuesday as geopolitical developments helped markets claw back the bulk of a sharp morning sell-off. Stocks had opened firmly in the red as traders braced for President Trump’s approaching deadline for Iran to reopen the Strait of Hormuz, but a request from Pakistan for a two-week extension of the deadline helped ease tensions and pulled the major indexes back toward the flatline by the closing bell.
The Dow Jones Industrial Average slipped 85.42 points, or 0.18%, to close at 46,584.46. The S&P 500 (SPI:SP500) managed to eke out a gain of 5.02 points, or 0.08%, finishing at 6,616.85 after trimming a decline of more than 1.2% earlier in the session. The Nasdaq Composite also ended narrowly higher, adding 21.51 points, or 0.10%, to close at 22,017.85. Oil remained a focal point for investors, with U.S. crude settling near $113 a barrel as the Iran standoff continued to put a floor under energy prices.
Notable Movers
Apple (AAPL) was the heaviest drag on the indexes, sliding roughly 4% after a Nikkei report indicated the company is facing setbacks in the testing phase of its long-awaited foldable iPhone. The news clouded what had been a positive development cycle, though separate reports later in the day suggested the device remains on track for a September launch alongside the iPhone 18 Pro lineup.
Broadcom (AVGO) bucked the early weakness, rallying 4.5% after announcing a long-term agreement with Alphabet to supply next-generation TPU chips. The deal underscores the continued appetite among hyperscalers for custom silicon and further cements Broadcom’s position as a key player in the AI infrastructure buildout.
Intel (INTC) climbed 3% on a pair of catalysts. Reports surfaced that the chipmaker may sign a semiconductor development deal with Elon Musk’s xAI, while investors also continued to digest last week’s announcement that Intel will repurchase Apollo Global Management’s 49% stake in its Irish Fab 34 plant for $14.2 billion — a move widely seen as a confidence signal in Intel’s foundry ambitions.
Arm Holdings (ARM) pulled back about 5% as investors took profits following the stock’s run to record highs. Tesla (TSLA) also finished lower, shedding more than 3%, while other megacap chipmakers including Nvidia, AMD, and Micron posted modest declines of around 1%.
Looking Ahead
The rest of the week brings a packed calendar that could set the tone for second-quarter trading. Delta Air Lines and Constellation Brands report earnings on Wednesday, giving investors a read on both consumer travel demand and discretionary spending. Thursday’s fourth-quarter GDP third estimate and February PCE prices will be watched closely for confirmation that the economy is holding up despite elevated oil costs — the Atlanta Fed’s GDPNow tracker slipped to just 1.6% late last week. Friday’s marquee releases include March CPI and the preliminary April University of Michigan Consumer Sentiment reading, both of which will factor heavily into expectations for the Fed’s next move. Meanwhile, developments on the Iran-Pakistan ceasefire front will likely remain the swing factor for risk appetite in the sessions ahead.