US close: Stocks lower as oil climbs, Middle East tensions persist

(Sharecast News) - Major indices traded lower on Tuesday as oil prices resumed their upward march amid ongoing Middle East tensions.

At the close, the Dow Jones Industrial Average was down 0.18% at 46,124.06, while the S&P 500 shed 0.37% to 6,556.37 and the Nasdaq Composite saw out the session 0.84% weaker at 21,761.89.

The Dow closed 84.41 points lower on Tuesday, taking a bite out of gains recored in the previous session on the back of renewed hopes that the US and Israel's conflict with Iran may soon draw to a close after Donald Trump said Washington and Tehran had held "very good and productive conversations" aimed at resolving hostilities in the Middle East.

Iranian state media later denied that any direct talks had taken place, while the Wall Street Journal said the White House did hold talks with Iran via Middle Eastern intermediaries. However, the report also said mediators had expressed doubt over the idea of the two nations reaching any kind of agreement.

Trump's comments came after he threatened strikes on Iranian power plants if the Strait of Hormuz was not reopened, while Tehran warned it would target US infrastructure in retaliation. The Trump administration was also reportedly planning to deploy roughly 3,000 soldiers to the Middle East.

Oil prices moved higher on Tuesday, trimming some of Monday's losses as traders assessed the latest developments in the conflict. Brent crude was up 3.84% at $103.78 a barrel, while West Texas Intermediate rose 4.26% to $91.88 a barrel.

On the macro front, US worker productivity slowed more sharply than first estimated in the fourth quarter, according to revised figures, pushing unit labour costs higher. The Bureau of Labor Statistics said nonfarm productivity rose at an annualised 1.8% pace, down from the previously reported 2.8%. Economists had expected a revision to 2%.

On another note, S&P Global's manufacturing PMI climbed to 52.4 in March, according to preliminary estimates, up from 51.6 in February and ahead of market expectations of 51.3, while the services PMI fell to 51.1 in March, down from 51.7 in February and below consensus estimates of 51.1 - reflecting the softest pace of expansion in the sector in eleven months. As a result, S&P's composite PMI slipped to 51.4 in March from 51.9 in February - its lowest level since April 2025.

Finally, the Richmond Federal Reserve's manufacturing index revealed that Fifth District manufacturing activity was flat in March, with the composite manufacturing index increasing to 0 in March, up from -10 in February. Shipments increased to -2 from -13, new orders improved to 4 from -9, and employment rose to -2 from -7.

In the corporate space, meme stock favourite GameStop said fourth quarter revenues had slumped 14.8% year-on-year to $1.1bn, but stocks rose in extended trading thanks to a strong cash position of $9bn.

Reporting by Iain Gilbert at Sharecast.com