US stocks: US market ends down as Iran peace deal optimism fades
Wall Street ended lower on Tuesday, with Amazon and Alphabet dipping, as investors became more pessimistic about a potential deal to bring stability to the
Wall Street ended lower on Tuesday, with Amazon and Alphabet dipping, as investors became more pessimistic about a potential deal to bring stability to the Middle East. The Strait of Hormuz will remain closed as long as the U.S. does not change its behavior and accept Iran's conditions to end the war, the newly appointed secretary of Iran's Supreme Security Council said.Brent crude futures held near one-week highs in choppy trading, while the S&P 500 energy sector index climbed."As has been the case for months, it's just really hard to come to an agreement that works for everyone.
Oil is a little higher, pricing in more uncertainty around that," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky."The market has obviously gyrated around this conflict at times, but it hasn't been the big headwind that a lot of people imagined it might be."Amazon and Alphabet each fell and weighed on the S&P 500 and Nasdaq, while SpaceX also dipped. Alternative asset managers rose, with Apollo Global and Blackstone both rallying. They were among financial institutions that recently partnered with Nvidia to establish compute-financing platforms aimed at mobilizing more than $500 billion.According to preliminary data, the S&P 500 lost 25.32 points, or 0.33%, to end at 7,727.79 points, while the Nasdaq Composite lost 160.36 points, or 0.60%, to 26,445.00.
The Dow Jones Industrial Average fell 188.41 points, or 0.35%, to 53,787.57.Strong quarterly earnings helped lift the S&P 500 to all-time highs last week, while the Nasdaq was down about 2% from its record high close on June 2.Signs that heavy investments by Microsoft and Amazon in AI data centers are paying off have also lifted sentiment.Consumer and producer price inflation readings, due over the next two days, will be crucial in shaping market expectations on the Federal Reserve's policy path, given Chair Kevin Warsh's goal of reducing guidance on monetary policy.Traders are split over the likelihood of an interest rate hike at the central bank's September meeting, according to the CME FedWatch tool.Rising energy costs, stemming from the Iran conflict, have spurred inflation concerns and complicated the paths of central banks globally.Jabil climbed after UBS upgraded the electronics firm's stock to "buy" from "neutral." U.S.-listed shares of On tumbled after the sportswear brand missed sales estimates.
LNG company Venture Global fell after its second-quarter revenue slightly missed estimates.
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