Finance

The Dow Jones Industrial Average finished near the flatline, largely weighed down by a significant 25% drop in IBM shares following a warning about soft demand for its software and infrastructure businesses. This decline offset strong quarterly earnings reports from major financial institutions, including Goldman Sachs and JPMorgan Chase. Banking sector profits remained robust, with Goldman Sachs leading the blue-chip index with a 9% advance after reporting an earnings beat.

U.S. Treasury yields fell sharply on Tuesday, with the 10-year yield dropping to approximately 4.58% following the release of favorable inflation figures. The two-year Treasury note, which is particularly sensitive to central bank policy, saw its largest one-day decline since February, falling 14 basis points to 4.14%. Traders have significantly recalibrated their outlook, with the implied probability of a Federal Reserve rate hike later this month dropping to roughly 20%.

Oil prices climbed roughly 2% on Tuesday, with Brent crude settling near $85 per barrel as geopolitical tensions between the U.S. and Iran intensified. The market reacted to the reinstatement of a naval blockade on Iranian vessels in the Strait of Hormuz, which traders fear will disrupt global energy supplies. While the withdrawal of a proposed transit levy on non-Iranian cargo provided some relief, the ongoing threat of regional conflict continues to pressure energy markets upward.