The S&P 500 was relatively unchanged on Tuesday as investors weighed signs of progress toward reopening the Strait of Hormuz against lingering doubts that the U.S. and Iran can reach a broader resolution to the conflict.
The broad market index traded up 0.1%, while the Nasdaq Composite traded around the flatline. The Dow Jones Industrial Average was also flat.
Nvidia shares kept the S&P 500 afloat, rising nearly 1%. On Monday, the company said it's partnering with six large asset managers to mobilize more than $500 billion for artificial intelligence infrastructure.
The moves come as oil held steady amid uncertainty over the Middle East conflict.
Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S. until several conditions are met.
Iranian Foreign Minister Abbas Araghchi said Sunday there was "no possibility of restarting negotiations" as long as the U.S. continues violating the June memorandum of understanding and does not compensate Iran for those violations, according to the semi-official Tasnim News Agency.
U.S. West Texas Intermediate futures were marginally higher at $82 a barrel. International benchmark Brent crude was also slightly higher at $88 a barrel.
Investors will next turn to a key batch of inflation data, with the July consumer price report due Wednesday and the producer price index out Thursday. The readings could prove particularly important after a weak jobs report complicated the Fed's outlook.
"I expect the CPI report to continue its downward trend which will further support the case for the Federal Reserve to hold rates steady rather than hiking them, even with last Friday's weak jobs report," said Dennis Follmer, chief investment officer at Montis Financial.
