A360
Key Takeaways✦ Atlas AI
01
U.S. stocks declined across major indices.
02
Middle East tensions fueled market uncertainty.
03
Energy sector gained; materials led losses.
Atlas AI
U.S. stocks fell on Monday, May 4, 2026, as investors weighed escalating tensions in the Middle East.
The Dow Jones Industrial Average dropped 557.37 points, or 1.13%. The S&P 500 fell 0.41%, while the Nasdaq Composite slipped 0.19%.
The move followed reports from the United Arab Emirates that Iran launched drones and missiles, testing an already fragile ceasefire between the U.S. and Iran. Separately, U.S. Central Command said U.S. forces sank six small Iranian boats in the Strait of Hormuz that were attempting to interfere with commercial shipping, according to sources. Iranian state media denied that the boats were sunk.
Oil prices rose during Monday’s regular trading session, though U.S. West Texas Intermediate crude futures later fell 1% in extended trading.
Sector performance
Energy was the only sector to finish the day higher, gaining 0.85%. Materials led the declines, down 1.57%, followed by industrials (1.17%), consumer staples (0.73%) and financials (0.72%).
Asourceser-hours movers
In asourceser-hours trading, Pinterest shares jumped 15% asourceser the company issued strong revenue guidance. Palantir fell nearly 3% even asourceser it beat earnings estimates, and Duolingo slid about 13% asourceser reporting monthly active users that came in below expectations.
