The U.S. stock market closed lower on Tuesday, with the Dow Jones, S&P 500, and Nasdaq Composite all posting modest declines. The S&P 500 fell 24.91 points (-0.32%) to 7,728.20, the Nasdaq Composite dropped 159.91 points (-0.60%) to 26,445.44, and the Dow Jones declined 184.13 points (-0.34%) to 53,791.85. The selloff was broad, with all three major indices posting losses, reflecting a cautious tone in the market amid ongoing uncertainty surrounding the U.S.-Iran impasse and rising oil prices. Alphabet stock was a notable laggard, with the tech giant's shares sinking amid concerns about its cloud business.

The most significant macro and sector drivers today were the ongoing tensions between the U.S. and Iran, as well as rising oil prices. The market's cautious tone was exacerbated by President Trump's comments suggesting that the U.S. was only "semi-negotiating" with Iran, which raised concerns about the potential for further escalation. Additionally, oil prices extended their gains, with the price of Brent crude reaching $90 per barrel, which put pressure on energy stocks and contributed to the market's risk-off sentiment. Nvidia's CEO also sent a strong signal to investors, which may have provided some support to the tech sector.