US close: Stocks drop on Middle East fears, Nasdaq at three-month low

(Sharecast News) - US stocks dropped for the third straight session on Tuesday, with the Nasdaq hitting a three-month low, as investors weighed the possibility of a drawn-out conflict in the Middle East.

The Dow fell 0.8%, hitting its lowest since 20 Jan, the S&P 500 slipped 0.9% to its lowest since 5 February, while the Nasdaq declined 1.0% to its lowest since 21 November.

Oil prices rose again during the session amid supply disruption fears, with Brent topping the $85 level - its highest since July 2024 - before trimming gains on speculation that the US Navy could escort oil tankers through the key Strait of Hormuz.

Brent still rose 4.7% to $81.40 a barrel by the close of trade after the US pledged to continue attacking Iran, as Tehran retaliated with strikes on US Embassies across the Middle East.

"For weeks, the market had been pricing the Middle East escalation like a cameo appearance in a Hollywood movie. A quick entrance, some dramatic dialogue, and then the credits roll before anyone's portfolio really feels the punch," said Stephen Innes, managing partner at SPI Asset Management.

"What began as an orderly unwind turned into a mini melt when investors suddenly realised the Iran conflict might not be a two or three-week event but a calendar event. When President Trump promised to do 'whatever it takes' to contain Tehran, the market heard two words it hates more than anything else. Open-ended."

Retailers impress

Retail giant Target was 7% higher after impressing the market with its fourth-quarter results, as adjusted EPS of $2.44 smashed the $2.16 expected by analysts. Target also flagged a strong start to the current year, with a "healthy, positive" sales increase in February.

Best Buy delivered a mixed set of holidayquarter results as softer demand for bigticket electronics weighed on sales and partly offset an improvement in profitability. However, shares rose 7% after fullyear revenues edged up to $41.69bn from $41.53bn, marking the first annual increase after three consecutive years of declines.

Pinterest jumped 9% after activist investor Elliott Management injected $1bn into the company, which the image pinboard platform said it would use to top up a share buyback programme.

Heading the other way was On Holding, which sank 6% after the upmarket running shoe brand underwhelmed with current-year sales guidance that missed estimates, following a record 2025.

Cable TV group Versant Media posted its debut earnings report following its spin-off from Comcast in January, which showed a slight fall in annual revenues, as the company expressed ambitions to shift its ramp up its growing non-pay TV arm. Shares rose 4%.

Dow Jones - Risers

International Business Machines Corporation (CDI) (IBM) $245.28 2.47%

Microsoft Corp. (MSFT) $403.93 2.11%

Verizon Communications Inc. (VZ) $50.87 1.78%

Salesforce.Com Inc. (CRM) $196.05 1.61%

JP Morgan Chase & Co. (JPM) $300.26 0.91%

Apple Inc. (AAPL) $263.75 0.51%

Dow Chemical Co. (DOW) $30.74 0.46%

Cisco Systems Inc. (CSCO) $78.96 0.43%

American Express Co. (AXP) $307.82 0.13%

Goldman Sachs Group Inc. (GS) $862.58 0.10%

Dow Jones - Fallers

Intel Corp. (INTC) $43.19 -4.75%

Caterpillar Inc. (CAT) $722.18 -4.01%

Amgen Inc. (AMGN) $377.00 -2.74%

Nike Inc. (NKE) $59.39 -2.66%

Boeing Co. (BA) $224.12 -2.45%

Procter & Gamble Co. (PG) $159.72 -2.32%

Unitedhealth Group Inc. (UNH) $289.21 -1.94%

3M Co. (MMM) $158.48 -1.85%

Merck & Co. Inc. (MRK) $119.83 -1.30%

Coca-Cola Co. (KO) $79.34 -1.10%

S&P 500 - Risers

Best Buy Co. Inc. (BBY) $65.95 7.08%

Target Corp. (TGT) $120.80 6.74%

Expedia Group Inc. (EXPE) $215.14 4.64%

Jack Henry & Associates Inc. (JKHY) $168.75 4.33%

Harley-Davidson Inc. (HOG) $18.49 4.05%

Akamai Technologies Inc. (AKAM) $102.08 4.03%

Adobe Systems Inc. (ADBE) $270.99 4.02%

Synopsys Inc. (SNPS) $424.32 3.94%

Sl Green Realty Corp. (SLG) $39.05 3.88%

Gartner Inc. (IT) $164.78 3.46%

S&P 500 - Fallers

Seagate Technology Plc (STX) $358.50 -10.44%

Western Digital Corp. (WDC) $250.61 -10.38%

Micron Technology Inc. (MU) $379.68 -8.87%

Newmont Corporation (NEM) $118.52 -7.93%

NRG Energy Inc. (NRG) $162.06 -7.70%

Perrigo Company plc (PRGO) $11.39 -7.70%

Albemarle Corp. (ALB) $164.73 -7.55%

Corning Inc. (GLW) $147.57 -6.52%

Lam Research Corp. (LRCX) $217.27 -6.51%

Monster Beverage Corp (MNST) $78.99 -6.43%

Nasdaq 100 - Risers

Qvc Group Inc Series A (QVCGA) $3.22 8.05%

Workday, Inc. (WDAY) $143.61 6.24%

Expedia Group Inc. (EXPE) $215.14 4.64%

Check Point Software Technologies Ltd. (CHKP) $159.70 4.06%

Adobe Systems Inc. (ADBE) $270.99 4.02%

Synopsys Inc. (SNPS) $424.32 3.94%

Take-Two Interactive Software Inc. (TTWO) $217.05 3.25%

Autodesk Inc. (ADSK) $253.40 3.15%

Intuit Inc. (INTU) $430.92 3.02%

Paychex Inc. (PAYX) $95.56 2.69%

Nasdaq 100 - Fallers

Seagate Technology Plc (STX) $358.50 -10.44%

Western Digital Corp. (WDC) $250.61 -10.38%

Micron Technology Inc. (MU) $379.68 -8.87%

Lam Research Corp. (LRCX) $217.27 -6.51%

Monster Beverage Corp (MNST) $78.99 -6.43%

DENTSPLY Sirona Inc. (XRAY) $13.30 -6.21%

Asml Holdings N.V. (ASML) $1,360.94 -5.33%

Applied Materials Inc. (AMAT) $351.32 -5.24%

KLA-Tencor Corp. (KLAC) $1,441.35 -5.07%

Intel Corp. (INTC) $43.19 -4.75%