The Dow Jones Industrial Average reversed lower Tuesday after President Donald Trump threatened Iran in a United Nations address, even as the S&P 500 held flat and the Nasdaq composite touched fresh highs. Oil prices, Treasury yields and bitcoin all moved as traders weighed the remarks alongside reports that Iran had offered to reopen the Strait of Hormuz.
The Dow Jones Industrial Average reversed to trade 0.4% lower in recent trading Tuesday, pulling back after President Trump threatened Iran during a speech at the United Nations. The S&P 500 stayed flat, while the tech-heavy Nasdaq composite hit new highs before settling into a 0.3% gain.
Inside the Dow, Amgen gained nearly 4% and Honeywell rose more than 2%. Cisco Systems and JPMorgan Chase lagged, dropping nearly 6% and more than 3% respectively. Across the broader market, sectors were mostly higher, with materials and consumer staples faring best while consumer discretionary and financials were hit hardest.
Trump warns Iran of possible "annihilation"
In a Tuesday address to the United Nations, Trump said Iran could be driven "into hell with no chance of survival" if no deal is reached, while also predicting a pact could be sealed following the midterm elections. He separately said the Russia-Ukraine war, another overhang for markets, could end soon. He was scheduled to meet Ukrainian President Volodymyr Zelenskyy later Tuesday.
Oil, yields and bitcoin react
West Texas Intermediate crude oil reversed higher to around $96.15 a barrel. Separately, a report from Japanese news wire Kyodo said Iran offered to reopen the Strait of Hormuz within seven days if the U.S. takes initial steps toward easing military pressure, citing a senior Iranian government official. The 10-year Treasury yield rose a single basis point to 4.98%. Bitcoin slipped to about $86,200 after the prior session's gain.
Source: Investor's Business Daily
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