Wall Street Corrects Ahead of Ceasefire Deadline, Market Doubts US-Iran Deal
US stocks weakened on Tuesday (April 21st) as investors grew concerned that a US-Iran peace deal would not be reached before the ceasefire expires on Wednesday. The S&P 500 fell 0.63% to 7,064.01, the Nasdaq fell 0.59% to 24,259.96, and the Dow fell 293 points (-0.59%) to 49,149.38.
Anxiety intensified after reports that Vice President JD Vance's trip to join negotiations with Iran was postponed because Tehran had not yet shown commitment. This information was reported by The New York Times and Axios, citing US officials familiar with the situation. This uncertainty over the diplomatic path has caused the market to re-price the risk of escalation, eroding the previously prevailing risk-on sentiment.
President Donald Trump previously told CNBC that he still hoped for a "great deal." However, he asserted that the US military was "ready" to resume bombing if the deal was not signed by the deadline, and stated that he did not want to extend the ceasefire. Trump also wrote in Truth Social that Iran had "violated the ceasefire repeatedly," reinforcing market perceptions that negotiations were becoming increasingly fragile as the deadline approached. (Arl)*
Source: Newsmaker.id
