US Stock Market Today: Wall Street Slips From Record Highs as Renewed US-Iran Tensions Weigh

The retreated after both indexes closed at record highs for three straight sessions last week. The pullback came as investors reacted to a fresh turn in the US-Iran conflict, which raised concern about the ceasefire path and the outlook for energy supplies.

Iran had reopened the Strait of Hormuz on Friday, and this move helped fuel a broad rally in global markets. However, sentiment changed after the United States said it had seized an Iranian cargo ship that tried to run its blockade. Iran then shut the waterway again, while its foreign ministry said on Monday that there were no plans for a second round of negotiations with Washington.

At 10:05 a.m. ET, the Dow Jones Industrial Average was little changed at 49,459.10. The S&P 500 fell 0.10% to 7,118.77, while the NASDAQ Composite dropped 0.24% to 24,408.51. Earlier reports also showed broader weakness across major indexes as investors reduced exposure to growth stocks and other risk assets.

Lizzy Galbraith, senior political economist at Aberdeen, said, “One explanation for this diplomatic whiplash is the power vacuum at the heart of the Iranian government.” She added, “Progress towards a lasting ceasefire and the reopening of the Strait of Hormuz remains a case of two steps forward, one step back.”