* Indexes: Dow up 0.39%, S&P 500 up 0.20%, Nasdaq down

0.20%

* Jefferies gains on report Japan's SMFG plans possible

takeover

* Barclays raises year-end target for S&P 500 to 7,650

from 7,400

* Ares Management ( ARES ), Apollo Global limit redemptions at

funds

(Updates with late-morning trading)

By Purvi Agarwal and Twesha Dikshit

March 24 (Reuters) - Wall Street's main indexeswere

mixed in choppy trading on Tuesday as investors assessed the

prospect of easing Middle East tensions, a day after President

Donald Trump postponed strikes on Iranian power plants that

sparked a relief rally.

Though the indexes opened lower, they pared much of their

declines as investors were hopeful of a de-escalation in the

Middle East, even as Tehran denied negotiations with the U.S.,

disputing Trump's comment on "productive talks".

"Investors are trying to wrap their heads around what's

going on and where the president is taking this war ... there's

a lot of volatility in the market," said Robert Pavlik, senior

portfolio manager at Dakota Wealth.

"Investors don't want to be completely out of this market

because the president is difficult to figure out ... you could

be hurt either being long or being short (in the market)."

Meanwhile, private credit concerns resurfaced after a report

said Ares Management ( ARES ) limited redemptions at 5% at its

private credit fund, along with Apollo Global Management ( APO )

, as withdrawal requests surged. Both firms pared earlier

declines and Ares edged higher.

The companies' decisions mirror those of BlackRock ( BLK )

and Morgan Stanley ( MS ) earlier this month.

Peers Blackstone and Carlyle dipped 1.3% each.

At 11:53 a.m. ET, the Dow Jones Industrial Average

rose 178.17 points, or 0.39%, to 46,386.64, the S&P 500

gained 12.94 points, or 0.20%, to 6,593.94 and the Nasdaq

Composite lost 44.61 points, or 0.20%, to 21,902.15.

On the S&P 500, gains in energy and financial stocks

helped offset declines in technology and

communication services sectors, leaving the index

subdued.

A rise in Goldman Sachs ( GS ) and Caterpillar ( CAT )

lifted the Dow, while tech stocks weighed on the Nasdaq.

U.S. business activity slowed to an 11-month low in March as

the Middle East war raised prices for energy products and other

inputs, a survey showed.

On Monday, Wall Street marked its biggest one-day gain since

February 6 as investors drew comfort from Trump's comments.

The conflict has driven oil prices sharply higher, reviving

inflation jitters and complicating the interest rate outlook for

central banks. The U.S. Federal Reserve struck a hawkish tone

last week, projecting only one reduction in 2026.

Money markets are no longer pricing in any rate cuts this

year, compared with two reductions expected before the Middle

East conflict erupted. Expectations for hikes nudged higher amid

escalating tensions last week, but were quickly unwound after

Trump's comments on Monday, according to CME's FedWatch Tool.

Among individual movers, shares of Jefferies gained

3.7% after the Financial Times reported that Japan's Sumitomo

Mitsui Financial Group ( SMFG ) is working on plans for a

possible takeover of the investment bank.

Cosmetics maker Estee Lauder ( EL ) fell over 9% to an over

nine-month low, facing investor backlash as it was in talks for

a potential merger with Spanish beauty group Puig Brands

.

Barclays lifted its 2026 year-end target for the S&P 500

index to 7,650 from 7,400, citing stronger earnings

expectations that outweigh macro risks like Middle East

tensions, AI-driven disruption and stress in private credit.

Advancing issues outnumbered decliners by a 1.16-to-1 ratio

on the NYSE and by a 1.2-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and 17 new lows,

while the Nasdaq Composite recorded 32 new highs and 129 new

lows.