Stocks Tumble as Iran Deal Hopes Fading

US stocks declined on Tuesday as investors became increasingly pessimistic about the prospects of a US-Iran peace deal. Oil prices rose in response to this growing unease, while major currency and bond markets remained relatively steady.

The impending release of US inflation figures on Wednesday may significantly impact the Federal Reserve's decision-making process for interest rates. A dovish Fed could appease President Donald Trump but potentially increase long-term yields, which would be unwelcome news for Treasury Secretary Scott Bessent.

Private credit giants KKR and Apollo saw significant gains of 8% and 6%, respectively, while other major companies like Honeywell and Alphabet experienced losses. The overall stock market remained subdued, with the Dow and S&P 500 dipping by 0.3% and the Nasdaq falling 0.6%.