U.S. Stocks Close Tuesday Lower

(MENAFN) U.S. equities retreated Tuesday as surging crude prices, a split economic outlook, and escalating Middle East hostilities rattled investor confidence across major indices.

The Dow Jones Industrial Average slipped 0.18 percent to close at 46,124.06, while the S&P 500 dropped 0.37 percent to settle at 6,556.37. The Nasdaq Composite Index bore the steepest losses among the three benchmarks, declining 0.84 percent to finish at 21,761.9.

Despite the broad retreat, market internals told a more nuanced story. Seven of the 11 major S&P 500 sectors finished in positive territory, with energy surging 2.05 percent and materials advancing 1.67 percent to top the leaderboard. Communication services bore the heaviest losses, tumbling 2.5 percent, followed by real estate, which eased 0.76 percent lower.

Crude oil staged a forceful comeback after the prior session’s sharp selloff, erasing earlier hopes that hostilities in the region were easing. Continued U.S.-Israeli military strikes against Iran reignited supply-disruption fears, sending global benchmark Brent crude futures for May delivery soaring 4.55 percent to settle at 104.49 dollars a barrel. U.S. benchmark West Texas Intermediate futures for the same delivery month climbed 4.79 percent to 92.35 dollars a barrel.

JPMorgan Chase CEO Jamie Dimon weighed in on the escalating crisis at a Washington, D.C. conference, warning that the conflict carries material risks for the near-term global economic outlook. “I think the Iran war makes it a better chance in the long run – it’s probably riskier in the short run, because we don’t know the outcome of it,” Dimon said.

On the domestic data front, flash readings on business activity painted a divided picture. The S&P Global U.S. Manufacturing PMI rose to 52.4 in March from 51.6 in February, topping the 51.3 consensus forecast. The services sector, however, lost momentum — the S&P Global U.S. Services PMI eased to 51.1 from 51.7 the prior month, narrowly falling short of market expectations.

Among high-profile technology names, performance within the so-called “Magnificent Seven” mega-cap cohort was uneven on Tuesday, one session after the group snapped a three-day losing streak with a broad advance. Tesla edged higher after reporting its first monthly sales gain in Europe in over a year — a closely watched milestone for the electric vehicle maker.

Elsewhere in corporate news, Bank of America analysts reinstated coverage of Oracle with a “buy” rating and a 200-dollar price target, arguing that tempered investor expectations — paired with robust demand for artificial intelligence infrastructure — create a compelling entry point at current valuations. Oracle shares nonetheless fell 4.7 percent on the session.

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