The Dow Jones Industrial Average dropped by 84.75 points, or 0.18%, finishing at 46,123.72. The S&P 500 also saw a decline, losing 21.42 points (0.33%) to settle at 6,559.62. The Nasdaq Composite experienced a sharper drop, falling by 184.87 points (0.84%), closing at 21,761.89.

As tensions remain high in the Middle East, with thousands of US Marines heading to the Gulf and both sides intensifying military actions, the markets are reflecting investor uncertainty. Despite Trump's delay on his self-imposed deadline for Iran to reopen the Strait of Hormuz, Iran's firm stance denying negotiations has contributed to the geopolitical instability, further impacting investor sentiment.