NEW YORK, March 10 (Xinhua) -- U.S. stocks closed relatively flat in choppy trading on Tuesday as investors digested the U.S.-Israeli strikes on Iran and navigated volatility in the energy markets.
The Dow Jones Industrial Average fell by 0.07 percent, to 47,706.51. The S&P 500 sank 0.21 percent to 6,781.48. The Nasdaq Composite Index increased by 0.01 percent to 22,697.10.
Nine of the 11 primary S&P 500 sectors ended in red, with energy and health leading the laggards by dropping 1.32 percent and 0.73 percent, respectively. Communication services and technology led the gainers by adding 0.26 percent and 0.08 percent, respectively.
West Texas Intermediate (WTI) crude futures, the U.S. benchmark, experienced sharp intraday swings before settling down more than 11 percent to 83.45 U.S. dollars a barrel. Earlier, WTI had plunged below 77 dollars following a post by U.S. Energy Secretary Chris Wright claiming the U.S. Navy had successfully escorted an oil tanker through the Strait of Hormuz. The post was quickly deleted, and White House Press Secretary Karoline Leavitt subsequently issued a statement clarifying that no such naval escorts had taken place.
Market participants expressed growing concerns over the potential consequences of high oil price. John Belton, a portfolio manager at the Gabelli Growth Fund, highlighted the risk of sustained higher oil prices seeping into broader inflation expectations.
"What I'm really focused on for the longer term is, to the extent that oil prices stay higher for longer, does that start to leak into inflation expectations, and does that derail this kind of disinflation story that's been playing out for the last 12 to 18 months," Belton said.
Most of the "Magnificent Seven" mega-cap stocks posted gains, and Microsoft was the sole exception. Memory chip manufacturers also continued their upward trajectory from the previous session, as SanDisk and Western Digital advanced an additional 5.12 percent and 1.59 percent, respectively.
Shares of retailer Kohl's ended 1.49 percent lower, and Hewlett Packard Enterprise dropped 3.26 percent. Oracle also ended 1.43 lower as investors awaited the software company's earnings release scheduled for after the market close.
Looking ahead, Wall Street is bracing for a pair of crucial domestic inflation reports. The February consumer price index is slated for release on Wednesday, followed by the January personal consumption expenditures price index on Friday. Market analysts note that while these reports are highly anticipated, neither will reflect the recent geopolitical spike in oil prices.
