LIVE MARKETS-An early rally turns red as Iran war intensifies

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AN EARLY RALLY TURNS RED AS IRAN WAR INTENSIFIES

Everything started out so nicely.

Early in Monday's session, the three major U.S. stock indexes seemed poised to make a comeback after suffering through five consecutive weekly losses, their longest weekly losing streaks in years.

The Dow Jones Industrial Average .DJI rose 49.50 points, or 0.11%, to 45,216.14, the S&P 500 .SPX lost 25.13 points, or 0.39%, to 6,343.72 and the Nasdaq Composite .IXIC lost 153.72 points, or 0.73%, to 20,794.64.

Global markets have been rattled by uncertainties surrounding the metastasizing war in the Middle East, which has placed severe constraints on global crude supply, thereby stoking inflation fears.

U.S. Federal Reserve Chair Jerome Powell said longer-term inflation expectations appear to be holding steady despite the near-term war-related shock, adding that the central bank does not yet need to decide how to react to any fallout from the war. While those comments helped stocks extend their gains, their effect was, as Powell might say, transitory.

But mixed messages from U.S. President Donald Trump, Iran's rejection of U.S. peace proposals, and Yemen's Iran-backed Houthi militia's entrance into the war helped douse investor risk appetite.

A 4.2% drop in chip stocks .SOX hit the tech-laden Nasdaq particularly hard.

Industrials .SPLRCI, aerospace/defense .SPCOMAED and airlines .SPCOMAIR were among other underperformers.

There was no economic data on Monday, but home prices, consumer confidence, retail sales, manufacturing PMI, and international trade are all due to step up to the plate in the coming days.

But jobs-related data, including the JOLTS report, ADP, Challenger Layoffs, and jobless claims will set the table for the Labor Department's March jobs report, which will be released on Good Friday, a stock market holiday.

Here's your closing snapshot:

(Stephen Culp)

EARLIER ON LIVE MARKETS:

THE IRAN WAR AND THE GLOBAL ECONOMY CLICK HERE

CFRA'S STOVALL SAYS S&P 500 SELLOFF CALLS FOR DISCIPLINE, NOT PANIC SELLING CLICK HERE

AI FEARS PUT MICROSOFT ON TRACK FOR WORST QUARTER SINCE 2008 CLICK HERE

'LIPSTICK EFFECT' KEEPS BEAUTY SECTOR GROWING, BOFA SAYS CLICK HERE

IRAN HAS INCENTIVE TO DRAG OUT WAR, INFLATING PRESTIGE AND MARKET PAIN, STRATEGIST SAYS CLICK HERE

BOUNCE DAY? STOCKS START THE WEEK WITH MODEST GAINS CLICK HERE

DOW IN CORRECTION: CAN FIBONACCI SUPPORT SPARK A REVERSAL? CLICK HERE

MINING STOCKS: MS SEES ROOM FOR RE-RATING DESPITE ENERGY SHOCK CLICK HERE

LUXURY: UBS SAYS EVEN SMALL BEATS MAY POP CLICK HERE

S&P 500 CORRECTION CLOSE TO ENDING - MORGAN STANLEY CLICK HERE

ENERGY AND RENEWABLES SUPPORT THE STOXX CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES SOFT; INWIT, ALUMINIUM STOCKS WATCHED CLICK HERE

IT'S A SAD STRAIT OF AFFAIRS AS OIL SOARS CLICK HERE