Wall Street Closes Mixed as Investors Weigh Progress Ahead of Trump's Iran Deadline
US Stocks End Mixed Amid Iran Tensions and Economic Worries
New York, - US stocks ended mixed on Tuesday as investors grappled with the escalating tensions in the Middle East and their potential impact on the economy. The S&P 500 and the Nasdaq snapped their respective winning streaks after four straight days of gains.
The S&P 500 and the Nasdaq Composite indexes ended the day with gains of 6.09 points (0.09%) and 28.46 points (0.13%), respectively, while the Dow Jones Industrial Average fell 78.54 points (0.17%). The crucial Strait of Hormuz, a vital waterway for oil shipments, remained closed despite President Donald Trump's deadline for Iran to open it.
The ongoing war between the United States and Iran has been a major concern for investors, with oil prices surging since the declaration of war on February 28. Chicago Fed President Austan Goolsbee expressed worries that the war would drive inflation higher and dampen the economy, resulting in a stagflationary shock and putting the central bank in a bind.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Economic data released by the Commerce Department showed that new orders for durable goods decreased more than analysts expected in February, before the onset of the war. The Labor Department's consumer price index, to be released later in the week, will provide a glimpse into the extent to which the war on Iran has affected inflation.
In the healthcare sector, UnitedHealth jumped and peers Humana and CVS Health advanced after the US government announced a payment hike to private insurers offering Medicare Advantage plans to older adults. The increase in payments is an improvement from the near-flat change proposed earlier.
Meanwhile, Apple's shares dropped after a report suggested that the company's long-awaited foldable phone is encountering engineering setbacks. Chipmaker Broadcom rose after signing a long-term deal with Alphabet to develop AI chips and other components. Intel also rose after announcing its participation in Elon Musk's Terafab AI chip complex project along with SpaceX, Tesla, and xAI.
| Index | Gain/Loss | % Change |
|---|---|---|
| S&P 500 | 6.09 points | 0.09% |
| Nasdaq Composite | 28.46 points | 0.13% |
| Dow Jones Industrial Average | -78.54 points | -0.17% |
Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Investor Takeaway
Investors are calibrating as they try to read into the president's messaging and predict the degree he will follow through on his threats.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
