LIVE MARKETS-US stocks end mixed as investors hunker down ahead of Trump Hormuz deadline

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US STOCKS END MIXED AS INVESTORS HUNKER DOWN AHEAD OF TRUMP HORMUZ DEADLINE

U.S. stocks ended mixed on Tuesday amid investor caution ahead of President Donald Trump's deadline for Iran to open the Strait of Hormuz. Investors are awaiting signs of progress in ongoing negotiations.

An Iranian official has told Reuters that an exchange of messages with the U.S. via mediators is still going on. No other details were provided.

Meanwhile, Pakistan's Prime Minister Sharif said diplomatic efforts for a peaceful settlement of the ongoing war in the Middle East are progressing steadily. Sharif requested that Trump make a two-week extension to a deadline he imposed on Iran to end its blockade of Gulf oil.

A senior Iranian official told Reuters on Tuesday that it is positively reviewing Pakistan’s request for a two-week ceasefire.

Trump is aware of Pakistan's proposal for a two-week extension to a deadline he imposed on Iran, and a response will come soon, Axios reported on Tuesday, citing White House Press Secretary Karoline Leavitt.

The main U.S. indexes were all sharply lower early in the session, but strengthened into the close. For example, after falling as much as 1.2% into a mid-morning low, the S&P 500 .SPX ended up about 0.1%. The Nasdaq .IXIC was off as much as 1.75%, but also finished up 0.1%. The Dow .DJI ended slightly red.

A majority of S&P 500 sectors ended green with communication services .SPLRCL and energy .SPNY posting the biggest gains. Of note, after rising more than 4.5%, NYMEX crude futures CLc1 are now in negative territory.

Staples .SPLRCS and discretionary .SPLRCD took the biggest hits .

Under the surface, transports .DJT and chips .SOX were among the outperformers.

The iShares U.S. Healthcare Providers ETF IHF.P rallied more than 3% on the news that the U.S. is set to raise Medicare Advantage payments to insurers.

Regarding scenarios investors may be positioning for with the Trump deadline, Bruce Zaro, managing director at Granite Wealth Management in Plymouth, Massachusetts, said:

"Who knows how it's going to turn out, but I don't think it's really a reason to throw everything overboard and change one's strategy."

Zaro added, "I believe there will be a solution, whether that is diplomatic or military. What may ultimately come out of this down the road is a much more open and enterprising area in the Mideast, including Iran, that I would liken somewhat to the fall of the Berlin Wall. When that fell, it opened up a whole animal spirits feeling within Eastern Europe."

"That potential is with the current situation with Iran. However, it is difficult day to day as investors react to the latest threats and retractions from the Trump administration, and I urge them to look beyond that. I take solace from... how the negative news on the Mideast is being taken much differently than it was two weeks [ago] when those threats drove the market into a tizzy."

Here is a snapshot of where markets stood shortly after 4 p.m. EDT.

(Terence Gabriel, Caroline Valetkevitch)

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