US Stock Market Closing: Why did Dow Jones, S&P 500, Nasdaq end lower today? Nasdaq snaps 13-day rally as Iran tensions rise, oil jumps above $95

U.S. stock markets ended slightly lower on Monday after fresh tensions between the U.S. and Iran worried investors. The S&P 500 fell by about 0.2%, showing a small drop from its recent record highs. The Dow Jones Industrial Average stayed almost flat, slipping just less than 0.1%. 4. The Nasdaq Composite dropped around 0.3%, ending its strong winning streak. In fact, the Nasdaq’s fall broke a 13-day winning streak and ended a run of record closes last week, as per CNBC TV18.

Exact closing numbers

S&P 500 closed at 7,109.14, down 16.92 points. Dow Jones closed at 49,442.56, down 4.87 points. Nasdaq closed at 24,404.39, down 64.09 points. The Russell 2000 (small companies index) actually rose 0.6% to 2,792.96, as per AP.

Why markets fell

The main reason for the drop was renewed geopolitical tension in the Middle East, especially between the U.S. and Iran. Over the weekend, the situation became tense again, shaking investor confidence, as stated by CNBC TV18. Iran warned that the Strait of Hormuz may not stay open, which is a key oil shipping route. The U.S. also seized an Iranian cargo ship near Oman, increasing tensions further. These events created doubt about ongoing peace talks between the U.S. and Iran.

Oil prices jump

Oil prices surged sharply due to fears of supply disruption. U.S. crude (WTI) rose about 6.9% to $89.61 per barrel. Brent crude jumped about 5.6% to $95.48 per barrel, crossing $95 again. The rise shows worries that oil supply through the Strait of Hormuz could be disrupted, as per CNBC TV18.

But market reaction was not extreme

Despite the tensions, stock market moves were not very big compared to earlier in the war. Investors still believe there is a chance of a U.S.-Iran deal, which could stabilize oil supply, as per the AP report. Many traders are not fully pricing in a worst-case war scenario yet.

Expert warning

Bank of America economist Claudio Irigoyen warned that markets may be underestimating the risks, as noted by CNBC TV18. He said investors are assuming a quick resolution like past trade conflicts, which may not happen this time. He also said de-escalation is not easy in a war, so risks are higher than markets think.

What’s Next

Markets are now looking ahead to a big earnings week. Major companies like Tesla, Intel, and United Airlines will report results soon. These earnings will test whether the recent stock market rally can continue.

Year-to-Date Performance

• S&P 500 is still up 3.9% for the year.
• Dow Jones is up 2.9% this year.
• Nasdaq is leading with a 5% gain in 2026 so far.
• Russell 2000 is the top performer, up 12.5% this year.

Stocks dipped slightly because of war tension fears, but investors are still hopeful for a deal and not panicking yet.

FAQs

Q1. Why did the US stock market close lower today?

The market closed slightly down because rising US-Iran tensions increased uncertainty and pushed oil prices higher.

Q2. Why did the Nasdaq fall after a long rally?

The Nasdaq dropped as investors took profits and reacted to geopolitical risks after a strong 13-day winning streak.