US markets track Iran optimism down

US stock indexes slipped on Tuesday and gave back some of their rallies from the day before, while oil prices got back to rising as uncertainty continues about how long the war with Iran will last.

The S&P 500 fell 0.4% after yo-yoing through the day. The Dow Jones Industrial Average dipped 84 points, or 0.2%, while the Nasdaq composite sank 0.8%.

Markets have been on a roller coaster since US President Donald Trump raised hopes that the war with Iran could end soon when he said Monday that the United States and Iran held productive talks "regarding a complete and total resolution of our hostilities in the Middle East." His announcement, which came just before Wall Street opened for trading, caused financial markets worldwide to reverse momentum immediately.

It calmed worries that the war may cause a long-term disruption to the oil and natural gas industry in the Persian Gulf, one big enough to send a blast of inflation to the region's customers worldwide.

All told, the S&P 500 fell 24.63 points to 6,556.37. The Dow Jones Industrial Average dipped 84.41 to 46,124.06, and the Nasdaq composite sank 184.87 to 21,761.89.

Mixed signals about the war

But financial market have since received both encouraging and discouraging signals about the war. On one side, attacks continued in the Middle East on Tuesday after Iran denied having direct talks with the United States. On the other, Pakistan's Prime Minister Shehbaz Sharif wrote on X that his country was ready to "facilitate meaningful and conclusive talks" to end the Iran war.

After all that, the price for a barrel of Brent crude oil rose 4.6% to settle at $US104.49 per barrel, a day after slumping more than 10%. Benchmark US crude rose 4.8% to $US92.35 per barrel and clawed back some of its own 10.3% plunge from the day before.

In the bond market, US government Treasury bond yields returned to rising and upped the pressure on financial markets worldwide. Higher yields make mortgages and other kinds of borrowing more expensive for households and for businesses, which slows the economy. They also hurt prices for all kinds of investments, from stocks to gold to cryptocurrencies.

Gold's price sank again and settled at $US4,402.00 per ounce, down roughly $US1,000 from a high point early this month. Its price has dropped despite its reputation as a safe harbor for investors during scary times.