* Indexes: Dow up 0.18%, S&P 500 off 0.02%, Nasdaq down 0.47%
* Jefferies gains on report Japan’s SMFG plans possible takeover
* Barclays raises year-end target for S&P 500 to 7,650 from 7,400
* Ares Management, Apollo Global limit redemptions at funds (Updates to prices in late afternoon)
By Sinéad Carew and Purvi Agarwal
March 24 (Reuters) – Wall Street’s main indexes were volatile on Tuesday as oil prices and U.S. Treasury yields rose, while investors reacted to the latest reports on the Middle East conflict a day after the market had a relief rally following the U.S. postponement of strikes on Iranian power plants. Bond yields extended gains after a weak auction of 2-year Treasury notes, adding pressure to equity markets, where Nasdaq composite was leading losses and the Dow Industrials lost steam but then turned higher again. Stocks also added to losses after reports the Pentagon is expected to send thousands of troops from the elite 82nd Airborne Division to the Middle East. A Reuters report, citing two people familiar with the matter, said this would add to the massive military buildup there even as the Trump administration has said it seeks talks with Iran. But indexes regained lost ground after Trump told reporters that the United States was talking to “the right people” in Iran in order to reach an agreement to end hostilities and that Iran has agreed they will never have nuclear weapons. Wall Street indexes had marked their biggest one-day gain since February 6 on Monday as oil prices fell after Trump had postponed the strikes and announced talks with Iran even as Tehran denied negotiations with the U.S., disputing Trump’s comment on “productive talks”. But on Tuesday, U.S. crude oil rose more than 5%. “It’s sort of this double whammy that we’ve been in for the market where higher oil prices and higher rates are both putting downward pressure on equities. That’s a pretty sort of stagflationary backdrop, which, needless to say, is not a positive backdrop for the stock market,” said Kevin Gordon, head of macro research & strategy at the Schwab Center for Financial Research in New York. And reports of more troops headed to the Middle East could suggest that “the war is escalating and will extend further,” Gordon said. “By virtue of that you’ve a longer lead time for oil flow and production to come back online. That means that oil prices stay higher for longer and you get a more sustained shock to the global economy. It’s worse for Europe and Asia, but, the U.S. is not immune to it completely,” he said. At 02:42 p.m. the Dow Jones Industrial Average rose 82.60 points, or 0.18%, to 46,291.07, the S&P 500 lost 1.33 points, or 0.02%, to 6,579.67 and the Nasdaq Composite lost 102.29 points, or 0.47%, to 21,844.47. Among the 11 S&P 500 major industry sectors, energy led gains with a 2.2% advance while the biggest losses were in communication services, down 1.9% and technology , which was off 0.4%. Meanwhile, private credit concerns resurfaced after a report that Ares Management limited redemptions at 5% at its private credit fund, along with Apollo Global Management , as withdrawal requests surged. Both stocks were down about 1%. Peers Blackstone and Carlyle were off 2% and 0.8% respectively. Earlier a survey showed U.S. business activity slowed to an 11-month low in March as the Middle East war raised prices for energy products and other inputs. Higher oil prices have revived inflation jitters and complicated the interest rate outlook for central banks. The U.S. Federal Reserve struck a hawkish tone last week, projecting only one reduction in 2026. Traders are no longer pricing in any rate cuts this year, compared with two reductions expected before the Middle East conflict erupted. Expectations for hikes nudged higher amid escalating tensions last week, but were quickly unwound after Trump’s comments on Monday, according to CME’s FedWatch Tool. Among individual movers, shares of Jefferies gained 3% after the Financial Times reported that Japan’s Sumitomo Mitsui Financial Group is working on plans for a possible takeover of the investment bank. Cosmetics maker Estee Lauder fell 10% after it said it was in talks for a potential merger with Spanish beauty group Puig Brands. Barclays lifted its 2026 year-end target for the S&P 500 index to 7,650 from 7,400, citing stronger earnings expectations that outweigh macro risks like Middle East tensions, AI-driven disruption and stress in private credit.
Declining issues outnumbered advancers by a 1-to-1 ratio on the NYSE where there were 139 new highs and 167 new lows. On the Nasdaq, 2,019 stocks rose and 2,632 fell as declining issues outnumbered advancers by a 1.3-to-1 ratio. The S&P 500 posted 20 new 52-week highs and 18 new lows. (Reporting by Sinéad Carew in New York, Purvi Agarwal and Twesha Dikshit in Bengaluru; Editing by Sherry Jacob-Phillips, Maju Samuel and Aurora Ellis)
