Stocks Mixed Amid Middle East Tensions and Oil Price Surge

U.S. stocks closed mixed as diplomatic efforts in the Middle East showed progress. Investors are trying to interpret Trump's stance on the Iran ultimatum. Oil prices rose due to ongoing tensions. Economic concerns were heightened by potential inflation and a lag in durable goods orders.

U.S. stocks ended a volatile session with mixed results on Tuesday amidst geopolitical tensions involving Iran. Diplomatic efforts appeared promising, yet traders remained cautious as they analyzed President Trump's hardline stance on the Strait of Hormuz deadline.

Despite the turbulent backdrop, the S&P 500 and Nasdaq managed slight gains before the closing bell, maintaining a five-day winning streak. Market participants weighed the odds of the President's rhetoric translating into policy action, as they adjusted their investment strategies accordingly.

The oil market reacted nervously, with prices climbing due to fears of disrupted supply chains. Chicago Fed President Austan Goolsbee expressed concerns over potential inflationary pressures deriving from the ongoing conflict. Meanwhile, recent economic data revealed a disappointing drop in durable goods orders, further complicating the Federal Reserve's stance on interest rates.

(With inputs from agencies.)