Wall Street Ends Mixed as Oil Jumps and Fed Split Widens; Dow Falls, Nasdaq Flat

Traders watch charts on the floor of the New York Stock Exchange. [Photo=AP/Yonhap]

U.S. stocks finished mixed on Tuesday, pressured by a sharp rise in oil prices and higher Treasury yields, while the Federal Reserve held interest rates but revealed unusually deep internal divisions. The Dow fell, and the Nasdaq ended little changed.

The Dow Jones Industrial Average closed down 280.12 points, or 0.57%, at 48,861.81. The S&P 500 slipped 2.82 points, or 0.04%, to 7,135.98. The Nasdaq composite added 9.44 points, or 0.04%, to 24,673.24. The Russell 2000, which tracks smaller companies, fell 0.6%.

Oil surged as U.S. pressure on Iran and tensions in the Middle East persisted. Brent crude rose as high as $111.84 a barrel intraday and settled at $110.44, up 5.8%. The jump revived inflation worries and pushed yields higher, dampening sentiment. The 10-year Treasury yield rose to 4.41%, and the 2-year yield climbed to 3.92%.

The Fed added to investor caution by holding its benchmark rate at 3.5% to 3.75% on an 8-4 vote, its widest split since 1992. Three officials opposed leaving room in the statement for possible rate cuts, while one argued for a 0.25 percentage point cut. Markets read the outcome as a signal that expectations for rate cuts this year may be pushed back.

By sector, energy stocks led on the oil rally, while utilities and materials fell. Starbucks rose 8.5% and Visa gained 8.3% after strong results. NXP Semiconductors jumped 25.5% on a robust earnings outlook. Robinhood slid 13.2% after disappointing results.

After the close, big tech traded in different directions. Alphabet rose more than 3% in after-hours trading, while Meta Platforms, Microsoft and Amazon were lower. Investors are watching oil, interest rates and major tech earnings as key drivers for near-term market moves.

* This article has been translated by AI.

AJP