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Alsharq Tribune-Otaify
U.S. stocks closed lower on Tuesday as investors digested rebounding oil prices, mixed U.S. economic data, and ongoing geopolitical developments.
The Dow Jones Industrial Average fell by 0.18 percent to 46,124.06. The S&P 500 sank 0.37 percent to 6,556.37. The Nasdaq Composite Index shed 0.84 percent to 21,761.9.
Seven of the 11 primary S&P 500 sectors ended in green, with energy and materials leading the gainers by adding 2.05 percent and 1.67 percent, respectively. Communication services and real estate led the laggards by going down 2.5 percent and 0.76 percent, respectively.
Oil prices resumed their upward trajectory after tumbling in the previous session. The sharp reversal occurred as the U.S.-Israeli strikes on Iran continued, dampening earlier market optimism that the conflict was potentially winding down.
Global benchmark Brent crude futures for May delivery surged 4.55 percent to settle at 104.49 U.S. dollars a barrel, while U.S. benchmark West Texas Intermediate crude futures for May delivery gained 4.79 percent to 92.35 dollars a barrel.
Weighing in on the volatile geopolitical landscape, JPMorgan Chase CEO Jamie Dimon said Tuesday that the ongoing conflict in the Middle East poses significant near-term risks to the global economy. "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 at a conference held in Washington, D.C.
On the economic front, preliminary data revealed divergent trends in the U.S. business activity. The S&P Global U.S. Manufacturing Purchasing Managers' Index (PMI) climbed to 52.4 in March, up from 51.6 in February, exceeding market expectations of 51.3. Conversely, the S&P Global U.S. Services PMI fell to 51.1 in March from 51.7 in the previous month, narrowly missing the median market consensus.
In the technology sector, performance among the "Magnificent Seven" mega-cap equities was mixed, following a broad rally on Monday that snapped a three-session losing streak for the group. Tesla ticked higher after the company reported its first monthly sales increase in Europe in more than a year.
In other corporate developments, Bank of America analysts resumed coverage of Oracle with a "buy" rating and a 200 dollar price target. The analysts suggested that lowered market expectations for the software provider, combined with a backdrop of robust demand for artificial intelligence capabilities, present an attractive discounted buying opportunity for investors. Oracle was down 4.7 percent Tuesday.
