[New York Stock Market] Iran Remains Silent Ahead of Ceasefire Expiration... All Major Indices Close Lower

Appearance of the New York Stock Exchange. New York, USA ? Photo by Yoonju Hwang

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On April 21 (local time), just one day before the ceasefire was set to expire, all three major U.S. stock indexes closed lower as Iran postponed its participation in the second round of talks. Throughout the day, prospects for a peace agreement fluctuated, heightening uncertainty.

At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished at 49,149.38, down 293.18 points (0.59%) from the previous session. The S&P 500, which focuses on large-cap stocks, dropped 45.13 points (0.63%) to close at 7,064.01, while the tech-heavy Nasdaq fell 144.429 points (0.59%) to end at 24,259.964.

Investor sentiment weakened on expectations that a peace agreement would not be reached before the ceasefire period ends. Contrary to U.S. President Donald Trump's prediction during a media interview that Iran would attend the second round of talks, Iran criticized the U.S. and decided to postpone its participation. As a result, Vice President J.D. Vance also delayed his trip to Pakistan, according to The New York Times (NYT).

The New York stock market opened higher after President Trump's interview was reported. In a morning interview with CNBC, President Trump stated that the U.S. and Iran would reach a "great agreement." He also emphasized that if no agreement is reached by the ceasefire deadline, the U.S. military would be ready to bomb Iran and that he does not want to extend the ceasefire.

Iran, through state media, strongly criticized the U.S. stance and deferred its participation in the second round of talks. Iranian Foreign Minister Abbas Araghchi asserted that the U.S. blockade of Iranian waters constitutes a "violation of the ceasefire agreement."

International oil prices also rebounded. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude closed at $88.10 per barrel, up 2.35% from the previous session. On the ICE Futures Exchange, Brent crude settled at $98.28 per barrel, rising 2.18% from the previous session.

Top-cap stocks ended mixed. Notable movements included Nvidia down 0.72%, Apple down 2.30%, Microsoft up 1.83%, Amazon up 1.30%, Alphabet up 1.30%, TSMC up 0.81%, Meta up 0.17%, and Tesla up 0.90%.

Brian Mulberry, chief market strategist at Jax Investment Management, commented, "It is difficult to build trust under these circumstances," and added, "Given the serious divisions between the Iranian military and government leadership, it is questionable whether the Iranian delegation can properly implement a peace agreement." However, Mulberry also predicted, "Matters regarding control of the Strait of Hormuz are expected to be resolved by this weekend."

The reason the declines were limited despite the possibility of peace talks falling through is the optimistic outlook for the New York stock market. Mulberry noted, "U.S. companies posted very solid first-quarter earnings," and assessed, "This is something that cannot be overlooked at this point."

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