The S&P 500 dropped 0.2%, while the Dow and the Nasdaq were mostly flat on Tuesday as investors balanced de-escalation optimism against reports of intensifying military strikes. While major indices initially staged a recovery on hopes for a swift end to the Middle East conflict the market turned choppy after the White House clarified that no naval escorts had yet occurred in the Strait of Hormuz. The initial relief from cooling oil prices was partially offset by a pivot back to cash while participants weighed signs that Iran may be deploying mines in the region. Technology shares provided a localized buffer as Micron jumped 3.5% and Intel added 2.6% following strong sales data from TSMC. Conversely defense contractors faced pressure with Lockheed Martin dropping 1.9% amid diplomatic signals. This volatility left the benchmarks lower as the market awaits inflation data later this week.