After a 0.79% gain from the Dow Jones Industrial Average on Monday, U.S. market indexes opened lower Tuesday and continued descending to close lower for the day. Tuesday’s losses erased most of Monday’s gains as oil prices were the catalyst for the market’s descent. The S&P 500 fell 1.26%, led lower by the materials and technology sectors. The Dow Jones Industrial Average was down 1.08% with United Technologies (UTX, Financial) leading the day’s losses.
It appears the lifting of Iranian sanctions was the main reason for oil’s losses on Tuesday. The sanctions would allow the region to increase its production of oil, which would likely further depress oil prices.
In a recent interview, Mohamed Damak of Standard & Poor’s discussed his perspective on the sanctions and how they would affect the oil market globally.
