The S&P 500 Index closed up 0.08% on Tuesday, while the Dow Jones Industrial Average decreased by 0.18%, and the Nasdaq 100 Index rose 0.04%. June E-mini S&P futures also increased by 0.08%. Early losses were reversed amid developments regarding President Trump’s deadline for Iran to reopen the Strait of Hormuz, which Pakistan suggested extending by two weeks, while Iran is “positively reviewing” the proposal.
Crude oil prices surged to a four-week high, contributing to market fluctuations as concerns over potential US strikes on Iranian oil infrastructure emerged. Economic indicators showed mixed results: capital goods orders exceeded expectations, rising 0.6% month-over-month, while consumer credit rose by $9.484 billion, below the anticipated $10.250 billion. The markets now anticipate a 3% likelihood of a 25 basis point rate hike in the upcoming FOMC meeting on April 28-29.
In corporate news, managed care stocks surged following a rate hike announcement by the Centers for Medicare & Medicaid Services, with UnitedHealth Group rising over 9%. Conversely, airline stocks fell due to rising fuel costs, while homebuilders decreased after downgrades from Seaport Global Securities. Notable movements included Broadcom, which rose over 6% following a deal with Google, and Apple, which saw a decline of over 2% amid delays in its foldable iPhone production.
