Wall Street closes mixed on ramped-up Middle East tensions

NEW YORK - US stocks lost steam on March 10, with the S&P 500 giving up early gains to skid into negative territory as investors weighed fading hopes for an earlier-than-expected end to the US-Israeli war on Iran against a backdrop of renewed military threats and ongoing worries of economic stagflation.

The Dow joined the S&P 500 in negative territory, while the Nasdaq eked out a nominal gain as US President Donald Trump reacted to reports that Iran was deploying mines in the crucial Strait of Hormuz with threats of retaliation and renewed calls for Iran’s total surrender.

“The market was showing some strength and it has given all that back,” said Mr Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder in New York. “There’s a lot of confusion among investors.”

“You see these headlines coming out of the White House that give the market hope, and then clearer heads prevail and markets realize this is nowhere near over,” Mr Ghriskey added.

The indexes wavered through early-session trepidation as US Defence Secretary Pete Hegseth warned that March 10 would be the most intense day thus far of strikes against Iran.

The conflict has sparked a jump in crude prices, which has fueled worries over inflation against a backdrop of a weakening labour market - a toxic combination of rising costs and a softening economy called stagflation.

Earlier in the session, the market remained hopeful that a near-term resolution could be reached, despite an announcement by Iran’s Revolutionary Guards that the country would not allow any oil to leave the Middle East until US-Israeli attacks ceased, which prompted threats from Mr Trump that he would strike back “20 times harder” if they blocked crude exports.

Additionally, the Trump administration indicated a potential willingness to end oil sanctions against Russia, which eased upward pressure on oil prices, while also raising the possibility of progress toward ending Russia’s war on Ukraine.

Prior to reports of Iran deploying mines in the Strait of Hormuz, Energy Secretary Chris Wright announced on March 10 that the US Navy had successfully escorted an oil tanker through the crucial waterway, a claim that the White House later walked back.

US and Brent front-month crude futures settled down over 11 per cent.

“When you see that type of a parabolic move, whether it’s in gold or oil or anything else, you tend to get a pretty violent reversal as soon as you get some news on the other side,” said Mr Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest in Elmhurst, Illinois.

The Dow Jones Industrial Average fell 34.29 points, or 0.07 per cent, to 47,706.51, the S&P 500 lost 14.51 points, or 0.21 per cent, to 6,781.48 and the Nasdaq Composite gained 1.16 points, or 0.01 per cent, to 22,697.10.

Of the 11 major sectors in the S&P 500, tech was the sole gainer, while energy, hurt by falling crude prices, suffered the largest percentage loss.

Chipmakers were higher on March 10, with Nvidia up 1.2 per cent, while SanDisk and Western Digital advanced 5.1 per cent and 1.6 per cent, respectively.

The S&P Software & Services Select Industry Index, battered in recent months over fears of AI-related disruption, was once again the clear underperformer, falling 1.7 per cent.

Health insurer Centene fell more than 16 per cent after it reaffirmed its 2026 profit forecast.

Shares of Oracle gained over 7 per cent in extended trading after the company released its quarterly earnings report.

Economic data expected later this week has the potential to move markets. This includes the Labor Department’s Consumer Price Index, the Commerce Department’s second take on fourth-quarter GDP and its broad Personal Consumption Expenditures report.

Declining and advancing issues on the NYSE were evenly distributed. There were 71 new highs and 63 new lows on the NYSE.

On the Nasdaq, 2,332 stocks rose and 2,420 fell as declining issues outnumbered advancers by a 1.04-to-1 ratio.

The S&P 500 posted 3 new 52-week highs and 5 new lows while the Nasdaq Composite recorded 65 new highs and 101 new lows.

Volume on US exchanges was 19.90 billion shares, compared with the 20.10 billion average for the full session over the last 20 trading days. REUTERS