The three major U.S. stock indices closed with mixed results.

While the Dow Jones Industrial Average and the S&P 500 index saw declines, the Nasdaq composite managed to turn positive toward the end of the session, bolstered by a late-day rebound in technology stocks.

By sector, materials fell 2% amid geopolitical concerns, while the financial and real estate sectors each declined by more than 1%.

Investor sentiment chilled rapidly during the session after U.S. President Donald Trump remarked that the memorandum of understanding for ending the war with Iran appeared to be over, signaling potential retaliatory strikes.

Concerns over a military conflict surrounding the Strait of Hormuz sent Brent crude oil surging 5.2% to $78.02 per barrel, fueling inflationary pressures.

In the afternoon, oil prices pared some of their gains and the stock market reduced its losses after President Trump clarified that he was not seeking a long-term war.

Uncertainty regarding monetary policy also acted as a downward factor.

According to the minutes from the first Federal Open Market Committee (FOMC) meeting led by Fed Governor Kevin Warsh, committee members were sharply divided between expectations for rate hikes and cuts regarding the future interest rate path.

As for individual stocks, technology shares that had been sluggish due to concerns over semiconductor oversupply rebounded across the board on positive news.

Broadcom rose more than 4% on news of a large-scale multi-year contract with Apple, and Nvidia climbed over 3% following reports that Chinese authorities plan to approve the purchase of Nvidia semiconductors.

As volatility stemming from the Middle East is expected to persist for the time being, market divergence by sector is likely to continue until the earnings season.