FX.co ★ US Stocks Pare Sharp Losses

US equities trimmed steep intraday losses on Tuesday, with the S&P 500 closing down 0.9%, the Dow Jones Industrial Average off 0.8%, and the Nasdaq Composite losing 1.1%. Markets initially sold off sharply on escalating US-Iran tensions, but sentiment improved after President Trump pledged to have US naval forces escort oil tankers through the Strait of Hormuz, tempering fears over supply disruptions.

The major indices had been down more than 2.5% at their session lows before staging a substantial rebound as Brent crude retreated from its intraday highs. The pullback in oil prices helped ease an earlier spike in Treasury yields that had weighed heavily on rate-sensitive technology names. Even so, materials and industrials led the residual declines amid persistent concerns about elevated energy costs, while Nvidia and Tesla slipped 1.3% and 2.7%, respectively.

In credit markets, Blackstone fell 3.8% after reports of roughly $1.7 billion in net outflows from one of its private credit funds intensified worries across the sector. Despite the late-session recovery, equities remain caught between the risks of a deepening geopolitical energy shock and the administration’s assertive efforts to stabilize global trade and shipping routes.