U.S. stocks closed lower on Tuesday, as investor confidence wavered amid fresh warnings that optimism surrounding easing trade tensions and slowing inflation may be premature.
U.S. Treasury Secretary Scott Bessent warned earlier that if the US and other economies fail to reach a trade agreement within the 90-day tariff suspension period, tariffs will revert to the so-called "reciprocal tariff" levels. The uncertainty surrounding the future of tariff policy has dampened investor sentiment.
The Dow Jones Industrial Average declined 114.83 points, or 0.27 percent, to end at 42,677.24. The S and P 500 lost 23.14 points, or 0.39 percent, closing at 5,940.46, snapping a six-day winning streak. The Nasdaq Composite slipped 72.75 points, or 0.38 percent, to 19,142.71.
Eight of the eleven S and P 500 sectors ended in red, with energy and communication services leading losses, down 0.99 percent and 0.77 percent, respectively. Utilities and health care were the day's top performers, edging up 0.29 percent and 0.27 percent, respectively.
In addition, the AI search products unveiled by Google at its recent developer conference fell short of market expectations. On Tuesday, a broad sell-off in technology stocks weighed on U.S. equities, bringing an end to the S and P 500's six-day winning streak.
In the crude oil futures market, investors remained cautious amid uncertainty surrounding U.S.-Iran nuclear talks, causing oil prices to edge lower on Tuesday.
The West Texas Intermediate for June delivery decreased by 13 cents, or 0.21 percent, to settle at 62.56 U.S. dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery lost 16 cents, or 0.24 percent, to settle at 65.38 dollars a barrel on the London ICE Futures Exchange.
In the gold market, investors took a cautious view of the prospects for Russia-Ukraine peace talks and the direction of U.S. tariff policy, prompting continued gold purchases as a hedge. International gold prices rose further on Tuesday, gaining more than 1.5 percent.
US stocks close lower amid tariff uncertainty
The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.
In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.
"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.
Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.
The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."
Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.
President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.
Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.
Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.
Iranian president says government focusing on ensuring supplies amid protests
