US Stocks Fall as Middle East Tensions Offset Strong Earnings and Retail Sales

Gate News message, April 21 — US stocks closed lower on April 21 as renewed concerns about the Middle East conflict outweighed optimism from solid corporate earnings and strong economic data. The Dow Jones Industrial Average (U.S. benchmark equity index) fell 293.18 points, or 0.59%, to 49,149.38; the S&P 500 (U.S. broad market index) declined 45.13 points, or 0.63%, to 7,064.01; and the Nasdaq Composite (U.S. technology-focused index) dropped 144.43 points, or 0.59%, to 24,259.96.

Middle East tensions weighed on sentiment after reports that US Vice-President J.D. Vance had canceled his trip to Pakistan for peace talks. However, a senior Iranian official told Reuters that Iran could attend talks with the United States in Pakistan if Washington abandoned its policy of pressure and threats, though Tehran rejected negotiations aimed at surrender. The S&P 500 energy index rose 1.31% as the sole advancing sector due to higher crude oil prices amid regional tensions.

On the positive side, US retail sales jumped 1.7% in March, the largest increase since March 2025, exceeding economist estimates of 1.4% growth. First-quarter corporate earnings growth expectations stand at around 14% according to LSEG data. JPMorgan raised its year-end S&P 500 target citing AI and technology-driven earnings strength, while Amazon announced up to $25 billion in investment in Anthropic on April 13, signaling major tech companies’ continued commitment to AI development. UnitedHealth surged 7% after raising its annual profit forecast and beating first-quarter expectations, contributing roughly 138 points to the Dow’s movement.

Investors also digested comments from Kevin Warsh, US President Donald Trump’s nominee to lead the Federal Reserve, whose confirmation hearing concluded on April 21. Warsh stated he had made no promises to Trump about cutting interest rates and emphasized he would act independently of the White House while pursuing broad reforms. Republican Senator Thom Tillis has promised to block Warsh’s confirmation until the Department of Justice ends an investigation into current Fed Chair Jerome Powell.

Decline outnumbered advances by a 2.67-to-1 ratio on the NYSE and 2.53-to-1 on the Nasdaq. Volume on US exchanges reached 18.08 billion shares, compared with the 20-day average of 18.4 billion.