US Stocks Decline Amid Uncertainty Over Iran Ceasefire Extension Following Trump Comments

US Stocks Plummet Amid Uncertainty Over Iran Ceasefire Extension

US stocks declined on Monday after President Donald Trump expressed doubts about extending the ceasefire with Iran, stating that a deal must be reached before Wednesday to avoid a breakdown in negotiations. The S&P 500 Index fell 0.4% by 12:10 p.m. in New York, putting the benchmark on track to snap a five-session winning streak. The tech-heavy Nasdaq 100 Index declined by 0.6%.

The global market's uncertainty was further fueled by Trump's comments, which added to the volatility in the oil market. Brent crude surged 5.5% to around $95 a barrel, while the Cboe Volatility Index hovered at 19. The Strait of Hormuz, a critical waterway, remains blocked until an agreement is finalized.

Vice President JD Vance is set to depart later in the day to resume negotiations in Pakistan, which are scheduled to begin on Tuesday. The US and Iran's peace talks have been marred by uncertainty, with Iran wavering on whether to participate in further negotiations. The hesitancy has created doubts about a breakthrough being achieved between the two sides.

The ceasefire is set to expire on Wednesday, making it a critical day for the negotiations. Trump's tone has shifted significantly, with the US leader threatening to "knock out every single Power Plant, and every single Bridge, in Iran" on Sunday. This sudden change in approach has left markets grappling with a rapidly shifting narrative in the Middle East.

| Index | Monday's Change | | --- | --- | | S&P 500 | -0.4% | | Nasdaq 100 | -0.6% |

The market's uncertainty is expected to continue throughout the week, with traders keeping a close eye on the release of economic data, including retail sales, initial jobless claims, and consumer sentiment data. Additionally, Trump's pick for Federal Reserve chair, Kevin Warsh, will have a confirmation hearing on Tuesday, which is expected to be a market-moving event.

In other market news, AST SpaceMobile Inc. plunged 7.7% after Blue Origin's flagship New Glenn rocket failed to correctly place a payload it was carrying for the Texas-based satellite networking company into its intended orbit. Meanwhile, Marvell Technology Inc. rose 4.4% to an all-time high after The Information reported that Google was in discussions with the semiconductor company to develop two new chips to run artificial-intelligence models more efficiently.