S&P 500 drops on Iran talks collapse

The S&P 500 closed lower, erasing an estimated $420 billion in market capitalization, as financial markets reacted to the collapse of planned US-Iran negotiations. The sell-off was triggered by Iran's final and formal decision not to attend the second round of talks scheduled for Islamabad, Pakistan. This development signals a significant escalation in diplomatic tensions and raises the risk of a broader regional conflict. The market's sharp decline reflects investor anxiety over the potential for military confrontation and its impact on global energy supplies and economic stability.