Quick overview

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The Nasdaq Composite fell 0.8%, leading losses in New York, as markets showed renewed skepticism over negotiations between the U.S. and Iran.

Global equities traded mixed on Tuesday, while precious metals moved higher and oil hovered just below $100, as investors questioned the likelihood of a de-escalation in the Middle East—despite Donald Trump delaying planned strikes on Iran’s power infrastructure.

In this context, the tech-heavy Nasdaq led declines, dropping 0.8%, followed by the S&P 500 (-0.4%) and the Dow Jones Industrial Average (-0.2%). In contrast, the Russell 2000 reversed earlier losses to gain 0.5%.

In recent hours, Trump postponed the offensive, citing “productive talks” with Iranian officials on Monday. However, Tehran denied that any negotiations with the United States are taking place. Israeli officials also indicated that while Trump is seeking a deal, the chances of success remain low, according to Reuters.

This follows a strong rally on Monday, when major U.S. indexes rose more than 1%—their largest daily gain since February 6. However, that momentum faded as uncertainty surrounding the conflict persisted.

“It’s like whiplash. You wake up every morning wondering what comes next. Investors still face a wide range of possible outcomes, and much depends on timing,” said Christopher O’Keefe, managing director and lead portfolio manager at Logan Capital Management.

Europe and Asia diverge

In Europe, major indexes closed mixed: the Euro Stoxx 50 and Germany’s DAX both slipped 0.1%, while France’s CAC 40 and the UK’s FTSE 100 rose 0.7%.

In Asia, markets posted solid gains. South Korea’s KOSPI climbed 2.7%, Hong Kong’s Hang Seng rose 2.8%, Shanghai advanced 1.8%, and Japan’s Nikkei gained 1.4%.

Gold rises as oil remains below $100

Precious metals moved higher despite equity weakness. June gold futures rose 1.5% to $4,504.90 per ounce, while May silver added 0.3% to $71.45. Platinum surged 3.1%, and palladium gained 0.9%.

The Middle East conflict has driven oil prices higher, reigniting inflation concerns and complicating the outlook for central banks. The Federal Reserve maintained a hawkish stance last week and now projects just one rate cut in 2026.

U.S. crude West Texas Intermediate rose 0.3% to $88.36 per barrel, while Brent crude slipped 0.1% to $96.06, remaining below the $100 threshold.

In line with this shift, money markets are no longer pricing in rate cuts this year, compared with expectations of two cuts before the conflict escalated. Expectations for rate hikes briefly increased last week amid rising tensions but quickly faded following Trump’s remarks on Monday, according to CME’s FedWatch tool.