The U.S. launched fresh strikes on Iran late Tuesday in retaliation for the downing of an American combat helicopter near the Strait of Hormuz.
- The U.S. Central Command said in a post on X that the “self-defense strikes” against Iran were directed by President Trump.
- On Tuesday, the S&P 500 and Nasdaq closed lower amid a pullback in chip stocks, extending last week's rout.
- Oil futures were edging higher in the overnight session following escalating tensions in the Middle East.
Stock futures declined in the overnight session heading into Wednesday after the U.S. launched fresh strikes on Iran in response to the shootdown of American helicopters near the Strait of Hormuz.
The Dow futures declined by 0.05%, the S&P 500 futures fell 0.11%, while the Nasdaq 100 futures traded 0.21% lower as of 9.37 p.m ET.
Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), the Invesco QQQ Trust (QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (DIA) all traded in the red at the time of writing, amid ‘bearish’, ‘bullish’, and ‘bearish’ sentiment, respectively.
Meanwhile, the iShares 20+ Year Treasury Bond ETF (TLT) was trading marginally lower amid ‘neutral’ sentiment at the time of writing.
How Did US Markets Fare On Tuesday?
On Tuesday, the S&P 500 and Nasdaq closed lower amid a pullback in chip stocks, extending last week's rout. The S&P 500 was down 0.26% at close, while the Nasdaq lost 1.12% at close. The Dow gained about 86 points to close 0.17% higher.
| Index | Move | Close |
| Dow Jones Industrial Average | 0.17% | 50,872.11 |
| S&P 500 | -0.26% | 7,386.65 |
| Nasdaq Composite | -1.12% | 50,872.11 |
US Market Drivers
The U.S. launched fresh strikes on Iran late Tuesday in retaliation for the downing of an American combat helicopter near the Strait of Hormuz, dashing hopes for a peace deal between the two countries.
The U.S. Central Command said in a post on X that the “self-defense strikes” against Iran were directed by U.S. President Donald Trump. “The mission is a proportional response to unjustified Iranian aggression.”
Earlier in the day, Trump said in a post on Truth Social that while the two pilots involved in the shootdown of the Apache helicopter were safe and uninjured, “the United States must, of necessity, respond to this attack.”
Iran’s foreign minister, Abbas Araghchi, has warned the U.S. about retaliation. In a recent post on X, he said, “Despite its defeats on the battlefield, the U.S. opted to test our determination. Our Powerful Armed Forces will leave no attack or threat unanswered. Leave our region if you want to be safe.”
The strikes come shortly after Trump, speaking to reporters after the NBA finals, said that the two countries were closing in on a “very, very good deal.”
Meanwhile, American investors are seemingly rotating out of AI and chip stocks again amid growing concerns over long-term returns. Last week, a steep selloff in chip stocks weighed on broader markets.
“So, does this mean that there’s some sort of fundamental deterioration?” Marta Norton, chief investment strategist for Empower Investments, said on CNBC in an interview. “I’m not so sure about that, but certainly there seems to be stretched sentiment that we’re getting some sort of correction too.”
On Wednesday, markets will be watching Oracle Corp.’s (ORCL) fourth-quarter results for cues on the AI trade. The U.S. May Consumer Price Index (CPI) is also scheduled for release on Wednesday, with some expecting the print to come in at a three-year high amid rising energy and food prices.
Later this week, the expected public listing of Elon Musk's SpaceX (SPCX), the largest public offering in history, is also likely to impact markets.
Trending Stocks To Watch
Super Micro Computer Inc. (SMCI): Shares of the San Jose-based chipmaker slumped more than 6% in the after-hours trading following the announcement of a $7-billion equity and equity-linked financing package to help it cover the cost of hardware component purchases.
Tilray Brands Inc. (TLRY): The stock drew increased attention from retail investors after the company announced plans to issue 1.6 million new shares to finance its acquisition of the U.K.-based medical cannabis platform Lyphe Group, while also eliminating $6 million in debt.
DraftKings Inc. (DKNG): The sports-betting firm jumped onto the retail radar amid an SEC filing that revealed its annualized consumer trading volume on its Predictions platform rose 24% month over month to reach $1.3 billion, and annualized total trading volume jumped to $3.1 billion, compared with April 2026.
Cracker Barrel Old Country Store Inc. (CBRL): The restaurant chain’s stock jumped more than 8% overnight after it posted a higher profit in its fiscal third-quarter (Q3), and lifted its full-year outlook.
Global Market Trends
Oil futures were edging higher in the overnight session on Tuesday following escalating tensions in the Middle East. Brent crude futures expiring in August gained about 0.45% to trade at around $91.86 a barrel at the time of writing, while WTI crude futures expiring in July rose 0.36%, trading around $88.52 a barrel.
Meanwhile, yields on the 10-year Treasury rose to 4.536%, and gold prices fell to around $4,201.63 per ounce, even as silver tumbled during market hours. The SPDR Gold Shares ETF (GLD) was down more than 1% in extended trading hours at the time of writing, and the iShares Silver Trust (SLV) was also trading in the red.
“As the endless war with Iran re-escalates, gold and silver are once again under pressure. Gold just broke below $4,200 and silver is approaching $64. But the bullish case for precious metals actually got much better because of the war, and the longer it lasts, the better it gets,” Peter Schiff said in a post on X.
Asian markets were trading mixed at the opening on Wednesday, with South Korea's KOSPI and Japan’s Nikkei 225 edging lower. The SSE Composite index was also declining at the time of writing, while Australian stocks were edging higher at the open.
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