The three major averages finished in the red on Tuesday.

The S&P 500 declined 0.37% to 6,556.37, while the Nasdaq Composite lost 0.84% to reach 21,761.89. The Dow Jones Industrial Average slipped 84.41 points, or 0.18%, to 46,124.06.

— Sean Conlon

Jefferies stock rose as much as 10% on Tuesday after the Financial Times reported that the investment banking and capital markets firm could be fielding a potential takeover bid from the second-largest lender in Japan. 

Sumitomo Mitsui Financial Group has assigned a small team to prepare for an acquisition of Jefferies, if the target's stock price falls far enough, the FT reported, citing a person familiar with the matter. The lender already has a minority stake in Jefferies. 

The potential acquisition comes as investors continue to reassess Jefferies, which is known for its aggressive lending practices and risk appetite. Late last year, its shares got battered after First Brands Group — an automotive parts company to which Jefferies had more than $700 million in exposure — collapsed. 

Shares are up more than 3%, as of 3:37 p.m. ET.

— Liz Napolitano

Monday marked an "inflection point" for retail investors, according to VandaTrack analyst Ruta Prieskienyte.

Everyday traders sold more than $20 million worth of single stocks on balance on Monday, Prieskienyte said. That marked the first day of net selling since November 2023.

Monday's action built on a broader theme of retail participation in the market softening since the U.S.-Iran conflict began, Prieskienyte said.

"The trend since the start of March has been one of gradually receding retail participation, alongside systematic deleveraging and only modest buying from long-only and hedge fund investors on the other side," Prieskienyte wrote in a Tuesday note.

But while small investors pulled away, big money appeared to be racing in. The three major stock indexes rallied on Monday after President Donald Trump said the U.S. and Iran were engaged in "productive" talks.

— Alex Harring

Citizens has reaffirmed its bullish outlook on Oracle, a new note from its analysts shows.

The bank maintained its market outperform rating on Oracle, according to the note dated Tuesday. It also kept its $285 price target on shares, implying roughly 85% upside.

"While Oracle continues to have a substantial dependence on OpenAI and is evolving its database business, we view the stock as an attractive opportunity for long-term capital appreciation for a number of reasons," Citizens analysts said Tuesday in the note.

The analysts pointed to the hyperscaler's accelerating growth of OCI revenue of $18B in fiscal year 2026, in addition to the company's ability to vertically integrate its AI infrastructure with its own unique product set against a backdrop of robust demand for compute. They added that industry sources are still dismissing murmurings of a delayed debut for Stargate — a $300 billion data center commissioned by OpenAI that was at least initially slated to open in 2028.

"Industry sources we spoke with pointed to durable demand for Oracle's compute, particular strength in large-scale deployments, and limited evidence of Stargate delays," the analysts wrote.

The analysts did note, however, that they also heard some "cautious comments on Oracle's database business, including [from] one vendor that orchestrates storage, database, and compute who told us they are seeing 'way less' Oracle database rollouts."

Citizens' latest note on Oracle comes as some investors are continuing to reevaluate the stock due to its massive debt-fueled push into AI. Earlier this year, the company said it plans to raise up to $50 billion through a combination of debt and equity by the end of this year.

Shares shed close to 4% on Tuesday. The stock is down almost 24% since the beginning of the year, while the Nasdaq Composite has declined 6% over the same period.

— Liz Napolitano

Stablecoin issuer Circle is tumbling as the latest version of the crypto bill known as the Clarity Act shows it could limit yield on stablecoin balances.

The shares were last down by 19%, marking the stock's worst day ever. Previously, its steepest dive was June 27, when it sunk 15.5%. The move also dragged down Coinbase, the main distribution platform for USDC. Shares were last down 9%.

Earning yield, usually in the form of rewards, on stablecoins like Circle's USDC and others is key incentive for users to hold the coins — similar to the interest earned on cash sitting in a bank account. Critics have argued that if crypto apps like Coinbase offer it, customers could move their cash out of the banks.

For more, read our full story here.

— Tanaya Macheel

Software companies were lagging the broader market on Tuesday as selling resumed in the group.

The iShares Expanded Tech-Software Sector ETF (IGV) was off more than 3%, trading at levels not seen since its close on Feb. 25.

The ETF has sunk 23% in 2026 as worries over artificial intelligence disrupting software companies' business models spooked investors.

Salesforce was off more than 5%, while ServiceNow fell more than 4%.

— Davis Giangiulio

The 2-year Treasury yield spiked on Tuesday following a "weak" auction, according to BMO, which said there was less non-dealer bidding than average.

The yield was last up more than 11 basis points at 3.944%. Additionally, the 10-year Treasury yield was more than 8 basis points higher at 4.42%.

— Sean Conlon

Pakistani Prime Minister Shehbaz Sharif on Tuesday said his country would host talks between the U.S. and Iran in pursuit of a "comprehensive settlement" of the ongoing war.

"Pakistan welcomes and fully supports ongoing efforts to pursue dialogue to end the WAR in Middle East, in the interest of peace and stability in region and beyond," Sharif said on X.

"Subject to concurrence by the US and Iran, Pakistan stands ready and honoured to be the host to facilitate meaningful and conclusive talks for a comprehensive settlement of the ongoing conflict," he said. Read more.

— Kevin Breuninger

The U.S. consumer remains fairly healthy, according to the latest macroeconomic data, but Loop Capital is taking a "wait and see" approach as the Iran war continues.
"[W]e believe the ongoing conflict in Iran is casting a major pall, as we think a prolonged period of high oil prices will not only reduce purchasing power but will also dent consumer confidence," analyst Anthony Chukumba wrote in a note Monday.

Therefore, he continues to recommend defensive names such as Five Below, National Vision, and Ollie's Bargain Outlet.

— Michelle Fox

On Tuesday, six stocks in the S&P 500 traded at new all-time highs.

Tickers that hit this milestone included:

• Chevron trading at all-time highs back to its merger with Texaco in 2000
• EQT trading at all-time highs back to when it was first listed on NYSE in June 1950
• Marathon Petroleum trading at all-time highs back to its spinoff from Marathon Oil in June 2011
• Phillips 66 trading at all-time high levels back to its IPO in July 2013
• Exxon trading at all-time highs back to when it was listed on the NYSE in 1920
• Corteva (CTVA) trading at all-time highs back to its spin-off from DowDuPont in May 2019

On the other hand, 20 stocks in the index traded at new 52-week lows, including:

• Domino's Pizza (DPZ) trading at lows not seen since November 2023
• Tractor Supply (TSCO) trading at lows not seen since February 2024
• Kraft Heinz (KHC) trading at lows not seen since March 2020
• Abbott Labs (ABT) trading at lows not seen since July 2024
• Adobe (ADBE) trading at lows not seen since January 2019
• Fair Isaac (FICO) trading at lows not seen since November 2023
• Gen Digital (GEN) trading at lows not seen since May 2024
• CoStar Group (CSGP) trading at lows not seen since February 2019

— Lisa Kailai Han

U.S. allies Saudi Arabia and the United Arab Emirates are getting closer to joining the war against Iran, the Wall Street Journal reported Tuesday.

Saudi Crown Prince Mohammed bin Salman is close to a decision to join the attacks, the report said, citing sources. The UAE is starting to crack down on Iranian-owned assets and recently shut down the Iranian Hospital and Iranian Club in Dubai, people familiar with the shutdowns told the Journal.

Separately, the New York Times reported that bin Salman has told President Donald Trump during a series of conversations over the last week that the U.S. must continue its push to destroy Iran's government. He argued the U.S.-Israeli campaign is an "historic opportunity" to remake the Middle East, the paper said, citing people briefed by American officials on the conversations.

— Michelle Fox

Moody's Ratings on Monday downgraded a private credit fund run by KKR and Future Standard to junk amid rising bad loans and a string of weak earnings.

The ratings firm lowered the debt ratings of FS KKR Capital Corp by one notch to Ba1 from Baa3 — pushing it into "junk" territory — saying that the fund's underlying asset quality had worsened more than its peers.

Non-accrual loans, meaning borrowers who have stopped making payments, rose to 5.5% of total investments at the end of 2025, one of the highest rates among rated BDCs, according to the report.

"The downgrade reflects FSK's continued asset quality challenges, which have resulted in weaker profitability and greater net asset value erosion over time relative to business development company (BDC) peers," Moody's said, referring to the fund by its ticker.

Shares of FSK dropped 4% in morning trading. They've plunged by more than 30% this year. Read more.

— Hugh Son

Software company JFrog had a rough start to 2026, but with artificial intelligence disruption risk priced in, UBS says the stock is due for growth.

The bank upgraded JFrog to a buy from a neutral and reiterated a price target of $60. This suggests gains of 37% from Monday's close.

AI disruption fears caused the stock to fall 31% since January, but UBS analyst Radi Sultan called the risk to reward ratio "attractive" now that the market has adjusted to AI exposure to software companies.

"While we think bending the AI disruption narrative will take time, JFrog looks set to benefit from multiple AI tailwinds in the near term and we think upward estimate revisions will be key to flipping the narrative," the analyst wrote.

— Itzel Franco

The three major averages reversed course from the previous session on Tuesday morning.

The S&P 500 fell 0.7%, along with the Nasdaq Composite. The Dow Jones Industrial Average shed 385 points, or 0.8%.

— Sean Conlon

JPMorgan thinks shares of Ecolab have gotten hit too much from the U.S.-Iran war, and thinks it's time to buy the stock.

The bank upgraded the specialty chemicals company to overweight, with a price target of $295, indicating a nearly 13% gain from Monday's close. Analyst Jeffrey Zekauskas wrote in a Tuesday note that the company will likely offset higher materials costs by initiating surcharges in April due to the Middle East conflict. 

"Ecolab's share price has moved lower due to risks of earnings growth erosion from higher raw material costs, which we think are likely misplaced," he wrote. Zekauskas also noted the company's recent purchase of CoolIT, which sells direct-to-chip cooling technology for data centers. "Ecolab thinks that the acquisition of CoolIT should lift the longterm growth rate of the company by about a percentage point, which we find reasonable."

Shares of Ecolab were 1% higher in premarket trading. 

— Davis Giangiulio

Apollo's $15 billion private credit fund was hit with redemption requests totaling 11.2% of shares — more than twice its 5% quarterly limit — and will distribute roughly 45 cents on the dollar to investors.

Shares of the asset manager slipped over 3% in premarket trading Tuesday and are down nearly 24% so far this year.

While peers like Blackstone have eased redemption limits to accommodate demand, Apollo is sticking to its 5% cap, describing the move as a way to preserve value.

Even as Apollo has sought to distinguish itself by focusing on loans to large, stable businesses, software remains its largest sector exposure, accounting for 12.3% of the portfolio.

— Yun Li

Check out the companies making headlines before the bell:

• Netgear — The San Jose, Calif.-based maker of WiFi routers and network switches surged 11% after the Federal Communications Commission (FCC) banned all imports of consumer routers made abroad, saying they pose national security risks.
• Jefferies Financial Group — Shares of the investment bank rallied nearly 7% after The Financial Times, citing people familiar, reported that Japan's second-largest lender, Sumitomo Mitsui Financial Group, is planning a possible takeover of Jefferies.
• Apollo Global Management — The asset management giant fell 2% after it was revealed the company will limit withdrawals from its flagship private credit fund to less than half of requests. In a filing with the Securities and Exchange Commission, Apollo said it had redemption requests that totaled to 11.2% of shares outstanding in the first quarter, exceeding the 5% cap per quarter the fund allows.

Read the full list here.

— Sarah Min

Oil prices were higher on Tuesday, paring losses after falling sharply in the previous session, as energy market participants assessed developments related to the Iran war.

International benchmark Brent crude futures with May delivery were traded up more than 1% at around $101 per barrel, while U.S. West Texas Intermediate futures for May traded more than 2% higher at roughly $90 per barrel.

The uptick follows a sharp sell-off on Monday, with Brent crude falling about 11% to around $99 per barrel after topping $112 on Friday. Read more.

— Lee Ying Shan, Sam Meredith

Markets are stuck in a holding pattern, with few assets producing meaningful returns, according to DoubleLine Capital CEO Jeffrey Gundlach.

"It's kind of a going nowhere market right now, sort of trendless. Almost nothing is up. Nothing is really down dramatically. Nothing has really made much money over the past nine months," Gundlach said on CNBC's "Closing Bell."

Read more here.

— Yun Li

Asia-Pacific markets pared gains Tuesday as oil prices rebounded, underscoring lingering uncertainty over the Middle East conflict.

Brent crude futures for May rose almost 3% to $102.91 per barrel while the West Texas Intermediate futures jumped 3.7% to $91.4 per barrel. The uptick follows a sharp sell-off on Monday, when Brent crude fell nearly 11% to around $99 per barrel after topping $112 on Friday.

South Korea's Kospi had surged over 3% before paring some gains to close 2.7% higher at 5,553.92 while the small-cap Kosdaq was last up 2.24%, ending the trading day at 1,121.44.

Japan's Nikkei 225 rose 1.43% to close at 52,252.28, while the Topix added 2.1% to 3,559.67 after Japan's headline inflation rate eased for a fourth straight month in February as the economy cooled on stabilizing food prices and fuel subsidies.

— Lee Ying Shan

Gold remained firmly in its bear market phase on Tuesday, as investors unwind positions, with a stronger U.S. dollar and elevated Treasury yields reducing the yellow metal's allure.

Spot gold prices declined 2% before paring losses to trade flat nearly at $4,404.79 per ounce. Gold futures for April delivery were last around $4,358.80 per ounce.

The dollar index, which measures the strength of the greenback against a basket of currencies, was up 0.5% on Tuesday. A stronger dollar reduces greenback-priced bullion's appeal by making it more expensive for holders of other currencies.

— Lee Ying Shan

Shares listed in Europe struggled to find direction on Tuesday, as uncertainty around a resolution to the Iran war weighed on sentiment.

Shortly after the opening bell, the pan-European Stoxx 600 was flat, with sectors and major regional bourses showing mixed performance.

Read more here.

— Chloe Taylor

Asia-Pacific markets jumped Tuesday as signs of de-escalation in the Middle East conflict moderated oil prices.

South Korea's Kospi surged over 3% before paring gains to add 1.5%, while the small-cap Kosdaq was 1.7%.

Japan's Nikkei 225 rose 1.1%, while the Topix added 1.87% after Japan's headline inflation rate eased for a fourth straight month in February as the economy cooled on stabilizing food prices and fuel subsidies.

The consumer price index fell to 1.3% last month, according to data released by Japan's Statistics Bureau Tuesday, marking the lowest since March 2022 and below the central bank's 2% target, down from 1.5% in January.

Australia's S&P/ASX 200 rose by 0.32%.

Hong Kong Hang Seng index advanced 1.62%, while the CSI 300 rose 0.52%.

— Lee Ying Shan

Asset manager Apollo told investors in its private credit fund that it will limit withdrawals this quarter to just 45%.

Apollo Debt Solutions BDC said that it received redemption requests equivalent to about 11% of shares outstanding in the first quarter, according to a filing with the Securities and Exchange Commission. This tops the 5% quarterly cap the fund permits.

Shares of Apollo were last down more than 2% in extended trading.

Read here for more from CNBC's Hugh Son about this latest development around Apollo's private credit fund.

— Darla Mercado

All 11 of the GICS sectors ended Monday's trading session higher.

The consumer discretionary sector, up 2.46%, led the gains. Materials and information technology stocks followed suit, respectively ending 1.49% and 1.46% higher.

On the other hand, the health care sector was the laggard, eking out a gain of 0.03%.

— Lisa Kailai Han

Shares of Estée Lauder were last less than 1% higher in Monday's extended trading hours after the beauty company confirmed that it was in discussions with Puig about a potential merger.

Estée Lauder's confirmation of the talks comes followed a report by The Wall Street Journal earlier on Monday. Shares of Estée Lauder sank nearly 8% in Monday's session.

Estée Lauder said in its press release that as of this time, no final decision has been made, and no agreement has been reached.

Puig, which is Barcelona-based and still family-controlled, operates brands such as Charlotte Tilbury and Carolina Herrera.

— Lisa Kailai Han

Stock futures traded near flat Monday night.

Dow futures slipped less than 0.1% shortly after 6 p.m. ET, while S&P 500 and Nasdaq 100 futures were both marginally below flat.

— Lisa Kailai Han