U.S. markets ended lower on Tuesday amid rising bond yields and the ongoing conflict in the Middle East. While President Donald Trump claimed he had called off an attack on Iran at the request of Gulf leaders, traders remained worried about a re-escalation of the conflict. Investors also awaited the release of AI chip giant Nvidia’s first-quarter earnings report. Traders overlooked the National Association of Home Builders released a report showed the NAHB/Wells Fargo Housing Market Index in the US, which measures builder confidence in the market for newly built single-family homes, rose to 37 in May 2026 from 34 in April which was its lowest level since September 2025, and came in above forecasts of 35. The current sales conditions rose three points to 40. Sales expectations in the next six months increased three points to 45 and traffic of prospective buyers posted a three-point gain to 25. Also, 32% of builders cut prices in May, down from 36% in April. The average price reduction was 6%, up from the 5% figure in April.
Traders paid no heed towards another report released by the National Association of Realtors showed US pending home sales increased 1.4% month-over-month in April 2026, following an upwardly revised 1.7% gain in March and surpassing market expectations of 1%. This marks the third consecutive month of growth, with rises in the Northeast (6.6%), Midwest (3.0%), and West (0.4%). Year-over-year, pending sales climbed 3.2%.
Nasdaq decreased 220.02 points or 0.84 percent to 25,870.71, S&P 500 fell 49.44 points or 0.67 percent to 7,353.61 and Dow Jones Industrial Average was down by 322.24 points or 0.65 percent to 49,363.88.
