Stocks Slip as Middle East Tensions Lift Oil and Stir Inflation Concerns – US Market Wrap

Renewed geopolitical tensions weighed on equities, extended gains in oil, and kept bond markets constrained by lingering inflation concerns. Gold held near $5,000, while shares of alternative asset managers came under pressure after a private credit fund suspended redemptions.

The S&P 500 declined, giving back part of its recent rebound from a technology-led selloff. Walmart issued a cautious outlook, though its US comparable sales exceeded expectations. Crude prices climbed to their highest level since August. Treasury yields were little changed, and the dollar strengthened against most major currencies.

Oil’s advance was fueled by escalating rhetoric and military developments surrounding Iran. President Donald Trump said the US must secure a “meaningful deal” with Tehran and indicated that the coming days will be critical in determining whether an agreement is reached. The US has significantly increased its military presence in the Middle East, deploying additional aircraft carriers, fighter jets, and refueling tankers, underscoring the risk of a broader confrontation.

The buildup has heightened concerns that Iran’s opportunity for a diplomatic resolution over its nuclear program may be narrowing. Any disruption in the region could threaten oil flows from an area responsible for roughly one-third of global supply, amplifying energy-driven inflation risks and contributing to investor caution.