Morning Brief: 3 factors have made for big historical stock market losses

👋 Good morning! The stock market tread water before dropping on Tuesday as oil prices rose. Investors remained concerned about a fragile situation in the Middle East that could easily escalate further as Iran denies negotiations are taking place and President Trump claims the country gave him a “present.”

Meanwhile, over 3,000 members of the 82nd Airborne Division are reportedly en route to the region.

The S&P 500 (^GSPC) fell 0.4%, the Dow (^DJI) 0.2%, and the Nasdaq (^IXIC) 0.8%.

On the agenda this morning:

📉 3 factors have driven double-digit stock market losses in the last 100 years. They’re all in play.

🐢 US business growth slows to 11-month low

🤖 AGI — the AI threshold?

🚫 Barbarians closing the gate

📬 Mailbag: Your (excellent) responses about AI and investing

📆 What we’re watching Wednesday: In addition to monitoring the Iran situation, we’re watching software stocks as Anthropic’s new capacities may put them back into the hot seat. The AI trade might not be in the market’s front seat, but many of the big players have been making headlines this week.

⭕️ Circle stock sinks 20% over reports that Clarity Act could restrict stablecoin rewards. Whether stablecoins can reap yield from deposits (like banks!) is a big question.

📉 ‘Dr. Doom’ doesn’t see a recession. But he sees some potential doom in AI’s impact on jobs. He’s also got a number of economic concerns.

₿ Bitcoin sinks below $70,000 again. But some analysts say the token ‘looks bottomed.’

🛢️ Citi sees $150 oil. The bank’s analysts are sounding the alarm as the war in Iran continues.

📱 Apple’s iPhone is set to gain market share this year. The good news comes even as the broader market is declining.

⚡️ Tesla sales rebounded in Europe. After a massive slump, the company saw a win on the continent. The only trouble: Chinese competitor BYD did too.

🍪 Arm has a new AI chip. It expects it to add billions to its revenue as the company shifts its strategy.

🎮 Fortnite parent Epic Games to lay off more than 1,000. The company says it’s due to slower growth and NOT because of AI.

🍏 Apple plans AI reboot with Siri app, ‘Ask Siri’ button. Pencil in June 8 on your calendars.

See what else is trending on Yahoo Finance.

Stock market history has a few lessons for investors.

One of the most potent is that stocks usually go up. Another is that stocks usually have pullbacks greater than 10% every year. (The average drawdown in the last 40 years is 14.2% intrayear, according to JPMorgan.)