U.S. stocks closed lower Tuesday, led by a fall in energy stocks amid ongoing U.S.-Iran tensions.
The S&P 500 lost 0.28%, while the Dow Jones Industrial Average slumped 0.42%. The Nasdaq composite fell 0.03%,
With fears fading that Iran would choose to engage in all-out war with the U.S., and risk detablizing oil supplies in the Middle East, traders reined in their bullish bets on oil.
Oil prices settled 1% lower, prompting a sea of red in energy stocks that offset small gains in technology and weighed on the broader market.
In energy, Halliburton (NYSE:HAL) and Chevron (NYSE:CVX) were among the biggest losers. But Apache (NYSE:APA) surged 26% after announcing – together with its joint venture partner - a significant oil discovery at a well located off the coast of Suriname.
Preliminary data evaluating the Maka Central-1 well "indicates the potential for prolific oil wells" and noted that "the size of the stratigraphic feature ... suggests a substantial resource," Apache said.
Gains in tech stocks, however, softened the blow in the broader market, largely thanks to surge in chip stocks, led by a rallies in Micron (NASDAQ:MU) and Western Digital (NASDAQ:WDC).
