Iran Downs U.S. Apache in Strait of Hormuz; Markets Plunge

Iran shot down a U.S. Apache helicopter overnight over the Strait of Hormuz, and two pilots on board were reported safe. President Donald Trump posted that the United States would need to respond to the attack.

Markets moved sharply after the report. The Nasdaq Composite declined 844 points to 25,085, the S&P 500 fell 146 points to 7,259, the Dow Jones Industrial Average dropped 490 points to 50,295, and the NYSE Composite lost 79 points to 23,145. Bitcoin fell toward $60,718 on Bitstamp.

Earlier in the session, markets had risen after a post from the president saying Israel and Iran were pursuing an immediate ceasefire and that negotiations toward peace were under way. At 12:38 p.m. ET, the president posted that Iran had shot down the helicopter, erasing earlier gains and accelerating selling in risk assets.

Declines were concentrated in technology-related sectors. Shares of companies tied to artificial intelligence, semiconductors and large-cap tech names moved lower, including Nvidia, Broadcom, Microsoft, Amazon, AMD, Oracle and Apple. Apple also faced additional selling after reports that new Siri AI features are under regulatory scrutiny in the European Union for potential antitrust issues.

Bitcoin extended its months-long drop from an all-time high of $126,272 in October 2025 and traded near $60,718 on Bitstamp during Tuesday’s session.

Other market pressures predated the Strait of Hormuz incident. May’s U.S. jobs report showed payrolls rose by 172,000 and unemployment was 4.3%, prompting investors to reduce expectations for near-term Federal Reserve rate cuts. The U.S. 10-year Treasury yield climbed to about 4.54%, around one-year highs.

Analysts pointed to profit-taking after a multi-month rally in AI-related chips and data-center infrastructure. Bank of America strategists flagged bearish signals across sentiment, valuation and macro metrics and advised clients to consider taking profits on broad U.S. equity positions. Deutsche Bank noted the S&P 500’s roughly 16% rally from April to May over two months is uncommon outside of recession recoveries.

In its weekly commentary, BlackRock Investment Institute wrote that stable inflation expectations relied upon by investors are gone and recommended treating asset allocation decisions as active calls built around exposures and convictions.

Oil prices moved on the shifting diplomatic signals. West Texas Intermediate initially fell more than 3% and Brent crude dipped below $92 per barrel on the early ceasefire post, but those declines reversed after news of the helicopter downing.

Traders will focus on Wednesday’s U.S. Consumer Price Index for signs that energy price moves are affecting inflation. New Federal Reserve Chair Kevin Warsh faces his first policy meeting next week.