NEW YORK, April 21, 2026, 1:29 PM EDT
Stocks faded into the red Tuesday afternoon, with renewed gains in oil and Treasury yields wiping out the morning’s strength. By early afternoon, the S&P 500 slipped 0.32% to 7,086.48. The Nasdaq Composite fell 0.29% to 24,334.67, and the Dow Jones Industrial Average dropped 0.27% to 49,307.73—each index had been in positive territory earlier.
The shaky open comes as Wall Street heads into a busy earnings week, with the S&P 500 and Nasdaq both finishing Friday at all-time highs. Investors now brace for results from Tesla, Boeing, and Procter & Gamble.
The prospect of peace looks a lot shakier. Trump said he wasn’t looking to extend the ceasefire with Iran, and Tehran still hadn’t officially agreed to fresh talks. Brent crude pushed higher again on Tuesday—this after a 5.6% spike Monday. Remember, about 20% of the world’s oil and LNG moves through the Strait of Hormuz.
“Relief rallies only get you so far when the underlying risks keep returning,” said John Wyn-Evans, who heads market analysis at Rathbones. Mark Hackett, chief market strategist at Nationwide Investment Management Group, called the move a “well-earned and likely temporary pause” after this month’s steep climb and a bump in rates during Kevin Warsh’s Senate hearing. Reuters
Earnings so far aren’t blinking. UnitedHealth kicked off insurer results by raising its full-year forecast, with Leerink’s Whit Mayo calling the quarter “nicely better than optimistic expectations.” Out of 48 S&P 500 names that had reported by Friday, 87.5% topped forecasts, according to LSEG. That solid report also lifted shares of Humana and CVS. Reuters
AI remained a magnet for some investors. Amazon announced plans to pour as much as $25 billion into Anthropic, while J.P. Morgan bumped its S&P 500 year-end forecast up to 7,600 from 7,200. Still, the bank flagged a “meaningful risk” that stocks could see a short-term pullback. Reuters
Economic numbers offered a mixed message. March retail sales jumped 1.7%—that’s the biggest increase in a year. Core retail sales, which flow straight into GDP math, picked up 0.7%. Pending home sales moved up 1.5%. “Households remain resilient for now,” said Edward Jones economist James McCann, who pointed to tax refunds and leftover savings as key supports. Reuters
Those numbers aren’t likely to simplify things for the Federal Reserve. Warsh is pressing for “regime change” at the central bank and a wholesale shift in its inflation strategy. Deutsche Bank’s Matthew Luzzetti, in a note before the hearing, argued he’ll have to “earn market trust and credibility” on inflation. Reuters
Wall Street’s risk is clear. When diplomacy picks up and oil prices drop, stocks have a way of jumping—Friday saw the S&P 500 and Nasdaq both notch record highs after crude slid over 11%. But Tuesday flipped the mood: oil rebounded, Fed uncertainty crept back in, and the rally’s footing gave way.
