WASHINGTON (dpa-AFX) - Following the recovery rally seen during the previous session, stocks turned in a relatively lackluster performance during trading on Tuesday. The major averages fluctuated over the course of the session before eventually closing in negative territory.
The Nasdaq slid 184.87 points or 0.8 percent to 21,761.89, the S&P 500 fell 24.63 points or 0.4 percent to 6,556.37 and the Dow dipped 84.41 points or 0.2 percent to 46,124.06.
The choppy trading on Wall Street came amid a rebound by the price of crude oil, with international benchmark Brent crude futures surging back above $100 a barrel.
Brent crude futures plunged by nearly 11 percent during Monday's trading after President Donald Trump claimed the U.S. and Iran held productive talks to end the conflict in the Middle East.
Oil has rebounded as Israel and Iran have continued to exchange strikes, with huge explosions heard in Tehran and other cities, as Iran denied it held talks with the U.S. to end the war.
'Iranian people demand complete and remorseful punishment of the aggressors,' Iranian Parliament Speaker Mohammad Bagher Ghalibaf wrote in response to Trump's comments.
He claimed Trump's latest rhetoric 'is used to manipulate the financial and oil markets and escape the quagmire in which the U.S. and Israel are trapped.'
Iran's foreign ministry said Trump's remarks were 'part of efforts to reduce energy prices and buy time' for military plans.
As the conflict entered its 25th day with no immediate signs of de-escalation, Saudi Arabia and the United Arab Emirates are edging toward joining the fight against Iran, the Wall Street Journal reported.
Sector News
Despite the pullback by the broader markets, energy stocks saw substantial strength amid the rebound by the price of crude oil.
Reflecting the strength in the sector, the NYSE Arca Oil Index surged by 2.6 percent, the NYSE Arca Natural Gas Index advanced by 1.8 percent and the Philadelphia Oil Service Index climbed by 1.7 percent.
Networking stocks also saw continued strength after rallying on Monday, driving the NYSE Arca Networking Index up by 1.9 percent.
On the other hand, software stocks showed a significant move to the downside, dragging the Dow Jones U.S. Software Index down by 3.5 percent to its lowest closing level in a month.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index jumped by 1.4 percent, while Hong Kong's Hang Seng Index surged by 2.8 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index edged down by 0.1 percent, the French CAC 40 Index rose by 0.2 percent and the U.K.'s FTSE 100 Index climbed by 0.7 percent.
In the bond market, treasuries pulled back sharply, offsetting the rebound seen during Monday's session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, jumped 5.8 basis points to a nearly eight-month closing high of 4.392 percent.
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