US sharemarkets declined on Tuesday as uncertainty grew over whether a peace deal between the United States and Iran would be reached ahead of a ceasefire deadline. The S&P 500 fell 0.63% to 7,064.01, while the Nasdaq Composite dropped 0.59% to 24,259.96. The Dow Jones Industrial Average lost 293.18 points, or 0.59%, to 49,149.38.
Investor sentiment weakened late in the session following reports that Vice President JD Vance’s planned trip to participate in negotiations had been paused, citing a lack of commitment from Iran. The development added to concerns that talks may stall as the ceasefire approaches its expiry.
President Donald Trump later said the ceasefire would be extended pending a response from Iran, after earlier signalling that the US was prepared to escalate if a deal was not reached. He also claimed Iran had violated the ceasefire multiple times.
Despite the pullback, markets remain near record levels following a strong rally in recent weeks, driven by expectations of a resolution to the war and solid corporate earnings.
In corporate news, UnitedHealth reported better-than-expected quarterly results and raised its outlook, lifting its shares. Amazon also moved higher after announcing plans to invest up to US$25 billion in artificial intelligence startup Anthropic.
Oil prices rose as expectations of a near-term deal weakened. West Texas Intermediate crude gained 2.81% to settle at US$92.13 a barrel, while Brent crude rose 3.14% to US$98.48.
Australian Market Outlook
Australian shares are set to open lower, with S&P/ASX 200 futures down 63 points, or 0.7%, to 8,915, after earlier losses exceeded 90 points.
Locally, companies including BHP, South32 and Paladin Energy are due to report, while Westpac will release its monthly leading index.
