Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

S&P 500 SLIPS AS MIDDLE EAST DEVELOPMENTS REMAIN FRONT AND CENTER

Wall Street's main stock indexes were little changed in choppy trading on Tuesday after giving up early gains as investors weighed fading hopes for an earlier-than-expected end to the U.S.-Israeli war on Iran against a backdrop of renewed military threats and ongoing worries of economic stagflation.

Indeed, the main U.S. stock indexes were cautious with Nasdaq .IXIC ending essentially flat. The Dow .DJI lost about 0.1%, and the S&P 500 .SPX lost around 0.2%.

This came as investors remained on the lookout for any signs of escalating tensions. U.S. officials including Defense Secretary Pete Hegseth and top U.S. general Dan Caine suggested that strikes against Iran were intensifying.

Iran also threatened to continue its oil blockade through the region. Energy producers in the Middle East are yet to resume full-scale production, and shipping costs are likely to be elevated for a while.

President Donald Trump told Iran to remove any mines it may have placed in the Strait of Hormuz, warning that if Tehran did not, it would face military consequences at a level not seen before. Trump added that the United States had no reports of Iran placing any mines in the stretch of water.

Most S&P 500 .SPX sectors ended lower with Energy .SPNY, down 1.3%, the only group with an absolute change of more than 1%. Communication Services .SPLRCL and Tech .SPLRCT posted slight gains.

Under the surface, gold/silver miners .XAU, biotech .NBI and chips .SOX showed strength, while transports .DJT and software & services .SPLRCS were on the weak side.

Regarding the day's market action, Gene F. Goldman of Cetera Investment Management said, "Equity markets favor transparency but without a set timeline on the Iran war, it is weighing on investor sentiment. Uncertainty around the war’s length is weighing heavily. Today, the market rallied when there was news that US Navy escorted a tanker through the Strait of Hormuz. This suggested that the war could be poised to end soon rather than later."

He added, "Also, the markets were not expecting the US Navy would be able to safeguard ships passing through the Strait for some weeks away. However, this optimistic feeling reversed after it was learned that the US Navy escort of a tanker proved to be false. Market sentiment reversed on that news."

Meanwhile, the U.S. Navy has refused near-daily requests from the shipping industry for military escorts through the Strait of Hormuz since the start of the war on Iran, saying the risk of attacks is too high for now, according to sources familiar with the matter.

Here is a snapshot of where markets stood shortly after 4 p.m. ET:

(Terence Gabriel, Sinéad Carew)

*****

EARLIER ON LIVE MARKETS:

WAGE DIVERGENCE EXPANDING - BANK OF AMERICA CLICK HERE

OIL SHOCK COULD ADD FRESH STRAIN TO VULNERABLE US ECONOMY, WELLS FARGO WARNS CLICK HERE

DURATION OF OIL SPIKE KEY TO IMPACT ON FED CLICK HERE

FROM XBOX TO WALL STREET: NUVEEN'S HALO STRATEGY TARGETS AI-PROOF INVESTMENTS CLICK HERE

OH, WAS THERE ECONOMIC DATA TODAY? HOME SALES, SMALL BUSINESS SENTIMENT CLICK HERE

MIDDLE EAST WAR COULD HIT HOUSEHOLD PRODUCT MAKER PROFITS - TD COWEN CLICK HERE

WALL STREET INDEXES MIXED IN CHOPPY MORNING TRADE WHILE OIL TUMBLES CLICK HERE

NASDAQ BULLS POINT TO STRONG BOUNCE OFF THE 200-DMA CLICK HERE

MIDDLE EAST WAR COULD THREATEN INDIAN COMEBACK, ABERDEEN SAYS CLICK HERE

TURBULENCE FOR EUROPE'S AIRLINES, BUT SOME MAY SEE SHORT-TERM BENEFITS - JPM CLICK HERE

BUILD PORTFOLIOS FOR PEACE AND WAR, SAYS KAIROS STRATEGIST CLICK HERE

COUNTER‑ORDER: SELL OIL, BUY EVERYTHING ELSE! CLICK HERE

EUROPE BEFORE THE BELL: FUTURES RALLY AS CRUDE OIL DROPS CLICK HERE

TRUMP SAYS WAR IS 'VERY COMPLETE' - IRAN HAS OTHER IDEAS CLICK HERE

​