NEW YORK: Wall Street’s main indexes were mixed in choppy trading on Tuesday as investors assessed the prospect of easing Middle East tensions, a day after President Donald Trump postponed strikes on Iranian power plants that sparked a relief rally.
Though the indexes opened lower, they pared much of their declines as investors were hopeful of a de-escalation in the Middle East, even as Tehran denied negotiations with the US, disputing Trump’s comment on “productive talks”.
“Investors are trying to wrap their heads around what’s going on and where the president is taking this war … there’s a lot of volatility in the market,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.
“Investors don’t want to be completely out of this market because the president is difficult to figure out … you could be hurt either being long or being short (in the market).”
Meanwhile, private credit concerns resurfaced after a report said Ares Management limited redemptions at 5 percent at its private credit fund, along with Apollo Global Management , as withdrawal requests surged. Both firms pared earlier declines and Ares edged higher.
The companies’ decisions mirror those of BlackRock and Morgan Stanley earlier this month.
Peers Blackstone and Carlyle dipped 1.3 percent each.
At 11:53 a.m. ET, the Dow Jones Industrial Average rose 178.17 points, or 0.39 percent, to 46,386.64, the S&P 500 gained 12.94 points, or 0.20 percent, to 6,593.94 and the Nasdaq Composite lost 44.61 points, or 0.20 percent, to 21,902.15.
On the S&P 500, gains in energy and financial stocks helped offset declines in technology and communication services sectors, leaving the index subdued.
US business activity slowed to an 11-month low in March as the Middle East war raised prices for energy products and other inputs, a survey showed.
On Monday, Wall Street marked its biggest one-day gain since February 6 as investors drew comfort from Trump’s comments.
The conflict has driven oil prices sharply higher, reviving inflation jitters and complicating the interest rate outlook for central banks. The US Federal Reserve struck a hawkish tone last week, projecting only one reduction in 2026.
Among individual movers, shares of Jefferies gained 3.7 percent after the Financial Times reported that Japan’s Sumitomo Mitsui Financial Group is working on plans for a possible takeover of the investment bank.
Cosmetics maker Estee Lauder fell over 9 percent to an over nine-month low, facing investor backlash as it was in talks for a potential merger with Spanish beauty group Puig Brands .
Barclays lifted its 2026 year-end target for the S&P 500 index to 7,650 from 7,400, citing stronger earnings expectations that outweigh macro risks like Middle East tensions, AI-driven disruption and stress in private credit.
Advancing issues outnumbered decliners by a 1.16-to-1 ratio on the NYSE and by a 1.2-to-1 ratio on the Nasdaq.
The S&P 500 posted 20 new 52-week highs and 17 new lows, while the Nasdaq Composite recorded 32 new highs and 129 new lows.
Comments
Comments are closed for this article.