Wall Street falls on heightened anxieties over Middle East conflict

US stock indices edged lower on Monday, May 4, 2026, as investor sentiment was dampened by escalating tensions in the Middle East conflict.

At the open, the Dow Jones Industrial Average fell 82.6 points, or 0.17%, to 49,416.66. The S&P 500 fell 1.7 points, or 0.02%, to 7,228.38​, while the Nasdaq Composite dropped 2.3 points, or 0.01%, to 25,112.18.

Energy markets experienced more pronounced volatility. Brent crude oil surged 2.90% to $111.31 per barrel, briefly touching $114 during morning trade. The surge followed warnings from the Iranian military that US forces would face retaliation if they entered the Strait of Hormuz. This rhetoric comes in response to President Donald Trump's pledge to provide safe passage for stranded ships.

Conflicting reports regarding a purported Iranian strike on a US Navy vessel further intensified the geopolitical friction.

Despite the standoff, the US military dismissed Iranian claims of a successful strike, later reporting that two American-flagged merchant vessels had safely navigated the strait. The ongoing closure of this vital waterway has severely restricted global oil supply, keeping prices elevated.

In the bond market, the yield on the 10-year Treasury climbed to 4.41% from Friday's 4.39%.

On the corporate front, earnings and M&A news drove individual stock movements.

This week, high-profile reports from Disney, Pfizer, and McDonald’s are set to provide a pulse check on global consumer health and industrial stability.

Investors now look ahead to the Labor Department’s April jobs report, scheduled for release on Friday, for further economic clarity.

eBay shares jumped 5.6% following an ambitious $56 billion unsolicited bid from GameStop. The proposal offers $125 per share in a mix of cash and stock.

Norwegian Cruise Line Holdings saw its stock tumble 4.7%. Although the company beat profit estimates.

Tyson Foods dipped 2.2% despite reporting quarterly earnings and revenue that surpassed Wall Street expectations.

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