The S&P 500 fell slightly in choppy trading on Tuesday as oil prices retreated and traders tracked the war in Iran.
The broad market index fell by 0.21% and ended at 6,781.48. The Dow Jones Industrial Average fell 34.29 points, or 0.07%, to close at 47,706.51. The Nasdaq Composite rose 0.01% to end at 22,697.10. Earlier in the day, the Dow lost as much as 296.57 points, or 0.6%. The S&P 500 and Nasdaq fell 0.5% and 0.4%, respectively, to their lowest levels.
Oil prices, which surged to nearly $120 a barrel on Monday at the height of fears over the Iran conflict, fell as traders believed the group of countries would use emergency crude reserves to ease disruptions caused by the conflict.
Prices then fell further after Energy Minister Chris Wright said in a post on social media, which was later deleted, that the US Navy had managed to escort the tanker through the Strait of Hormuz. However, after the announcement appeared to have been erased, oil recovered slightly from its lows, while stocks moved off their daily highs.
White House spokeswoman Caroline Leavitt said later on Tuesday that the US did not actually escort the tanker through the strait, SEEbiz reports.
Also, CBS News reported that the US has begun to notice indications that Iran is moving toward laying mines in the strait.
West Texas Intermediate crude oil futures fell 11.94% to settle at $83.45 a barrel. Brent crude fell 11.28% to end at $87.80 a barrel.
Wall Street is coming off a wild session in which the Dow erased a deficit of more than 800 points as crude oil prices fell. The upheaval was prompted by President Donald Trump on Monday hinting that the conflict could end soon. He later said, “We are making great strides toward our military objective.”
