U.S. Stocks Mixed Amid Iran Strait Negotiations and Middle East Tensions

U.S. stocks ended Tuesday on a mixed note, paralleled by the dwindling hours leading up to President Donald Trump's deadline for Iran to permit passage through the Strait of Hormuz. While diplomatic talks are reportedly making progress, courtesy of Pakistan's Prime Minister Shehbaz Sharif's appeals, key indices like the S&P 500 and Nasdaq experienced setbacks after four consecutive days of gains.

With intensified conflict in the Middle East, Iran has not eased its restrictions on the Strait, causing significant market jitters and upward pressure on oil prices. This scenario has escalated fears of inflation and affected the Fed's potential interest rate decisions. Front month U.S. WTI crude saw marginal gains, whereas Brent crude recorded minor declines.

Amidst these geopolitical tensions, the economy faces additional hurdles: the Commerce Department reported a steeper-than-expected drop in durable goods orders, intensifying worries about inflation and potential stagflation. Corporate developments added flavor to the market: UnitedHealth, Humana, and CVS Health rallied following favorable government announcements, whereas Apple stumbled on engineering challenges, and Broadcom and Intel made strategic strides in the tech domain.