The S&P 500 slipped on Tuesday, pulling back after the strong gains recorded in the previous session, as rising crude oil prices and the ongoing Iran conflict—now entering its fourth week—weighed on sentiment.
The benchmark index declined 0.37% to close at 6,556.37. The Dow Jones Industrial Average fell 84.41 points, or 0.18%, ending at 46,124.06, while the Nasdaq Composite dropped 0.84% to settle at 21,761.89.
Donald Trump said Tuesday that the U.S. is currently in negotiations with Iran, noting that the other side appears open to reaching a deal. His remarks followed a post a day earlier claiming “very good and productive” discussions toward resolving tensions in the Middle East, which had helped lift markets in the previous session. However, Iranian state media denied that direct talks had taken place.
Investor uncertainty has increased amid mixed signals around the progress of negotiations, especially as Israel and Iran continue exchanging strikes despite diplomatic comments. Meanwhile, the Pentagon is reportedly preparing to deploy around 3,000 troops to the Middle East, although no final decision has been made regarding direct military involvement in Iran.
Oil prices resumed their upward move on Tuesday after a brief pullback. Brent crude rose 4.55% to $104.49 per barrel, while West Texas Intermediate (WTI) gained 4.79% to settle at $92.35 per barrel.
The energy sector emerged as the top performer within the S&P 500, climbing 2% on the day and extending its month-to-date gains to over 9%, making it the only sector currently in positive territory for the period.
On the diplomatic front, Pakistan has offered to mediate talks between the U.S. and Iran, providing a potential avenue for de-escalation.
Over the weekend, Trump warned of possible strikes on Iranian power facilities if the Strait of Hormuz remained closed, while Iran responded by threatening to target U.S. infrastructure in retaliation.
