US stocks closed lower Tuesday as a sell-off in major technology companies and uncertainty over the Iran conflict and the reopening of the Strait of Hormuz weighed on investor sentiment.
The Dow Jones Industrial Average fell 184.13 points, or 0.34%, to 53,791.85.
The S&P 500 declined 24.92 points, or 0.32%, to end at 7,728.19, while the Nasdaq Composite dropped 159.91 points, or 0.6%, to 26,445.45.
The S&P 500 and Nasdaq saw their second consecutive sessions of losses.
Communication services was the weakest-performing sector in the S&P 500, falling more than 1%. Alphabet shares lost about 3.6%, while AppLovin declined approximately 6%.
Alphabet remained under pressure following Google’s announcement last week that it was restructuring its artificial intelligence divisions.
Information technology stocks also traded lower. Apple shares dropped more than 1%, while Nvidia erased earlier gains and closed slightly lower.
Nvidia said Monday that it was partnering with six major asset managers to mobilize more than $500 billion for AI infrastructure investment.
Investor sentiment was also pressured by uncertainty over whether Iran would reopen the Strait of Hormuz and whether Tehran and Washington could reach a broader agreement.
Iranian officials reiterated that the strategic waterway would remain closed until Tehran’s conditions were met. Foreign Minister Abbas Araghchi also said negotiations could not resume unless the US complied with a June framework agreement and compensated Iran for alleged violations.
Oil prices rose amid the uncertainty, with US benchmark West Texas Intermediate crude gaining 1.5% to $83.4 per barrel. International benchmark Brent crude rose around 1.6% to $89.1.
Investors are awaiting July consumer inflation figures Wednesday and producer inflation data Thursday for clues about the Federal Reserve’s next monetary policy steps.
European stocks mixed
European stock exchanges ended Tuesday’s session with a mixed performance as investors also monitored diplomatic efforts involving the US and Iran.
The pan-European Stoxx Europe 600 index edged up 0.01% to 660.51 points.
Germany’s DAX 40 rose 0.26% to 26,391.42, while Italy’s FTSE MIB 30 gained 0.08% to 53,706.21.
Spain’s IBEX 35 also climbed 0.2% to end the day at 20,213.60
Britain’s FTSE 100 fell 0.17% to 10,844.19, and France’s CAC 40 declined 0.13% to 8,714.94.
