U.S. equities closed mixed as geopolitical tensions flared after President Trump declared the Iran deal "over," sparking fears of further conflict. The Dow Jones Industrial Average experienced a sharp decline, falling over 500 points, while the S&P 500 edged lower and the Nasdaq saw a slight gain. Rising oil prices, driven by concerns over shipping through the Strait of Hormuz, and increasing Treasury yields weighed on overall market sentiment.

Despite broad market pressure, select chip stocks like Broadcom saw gains, partly due to a deal with Apple. However, declines in other major technology names, coupled with warnings from the International Monetary Fund regarding global growth, contributed to the cautious trading environment. The U.S. two-year Treasury yield approached its 2026 peak, nearing 4.23%, as a global bond selloff intensified on renewed inflation concerns.

In related news, Iraq agreed to curb dollar flows to Iran-linked groups in a deal with the U.S., which will lift a suspension on currency shipments to Baghdad. The Securities and Exchange Commission also cleared a key legal hurdle for UBS regarding its crisis-resolution strategy, potentially impacting "bail-in" mechanisms. Cloud Data Holdings and Infint Acquisition Corp 2 withdrew their U.S. IPO plans.