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The S&P 500 fell on Tuesday, bogged down by key technology stocks, as hopes among investors that the the Strait of Hormuz would reopen faltered, exacerbating lingering doubts that the U.S. and Iran can reach a broader resolution to the conflict.
The Dow Jones Industrials tumbled 184.13 points to conclude Tuesday at 53,791.85.
The much-broader index slid 24.91 points to 7,745.27.
The NASDAQ Composite retreated 159.91 points to 26,445.92.
The downward progress came as oil held steady amid uncertainty over the Middle East conflict.
Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S. until several conditions are met.
Iranian Foreign Minister Abbas Araghchi said Sunday there was “no possibility of restarting negotiations” as long as the U.S. continues violating the June memorandum of understanding and does not compensate Iran for those violations, according to the semi-official Tasnim News Agency.
Communication services was the leading S&P 500 laggard, falling more than 2% as Alphabet and AppLovin shares dropped 3.8% and nearly 6%, respectively. Alphabet shares have been under pressure recently, notching their fourth losing session in five, since Google announced that it’s reshuffling its artificial intelligence divisions last week.
Information technology was another sector in the red. Nvidia shares gave up their morning gain to close marginally lower, even after the chipmaker on Monday said it’s partnering with six large asset managers to mobilize more than $500 billion for artificial intelligence infrastructure. Apple shares were also weak, dropping more than 1%.
Prices for the 10-year Treasury showed strength, dropping yields to 4.69% from Monday’s 4.71%. Treasury prices and yields move in opposite directions.
Oil prices resurfaced $1.22 to $83.35 U.S. a barrel.
Gold prices gained $8.90 to $4,428.60 U.S. an ounce.
