* Indexes down: Dow 0.67%, S&P 500 0.62%, Nasdaq 0.83%

* 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 on market open)

By Purvi Agarwal and Twesha Dikshit

March 24 (Reuters) - Wall Street's main indexes pulled

back on Tuesday as renewed doubts over easing Middle East

tensions tempered the previous session's relief rally despite

President Donald Trump's decision to delay strikes on Iran's

power grid.

Trump postponed his decision, citing "productive talks" with

Iranian officials on Monday, but Tehran has said no negotiations

with the U.S. have taken place. Israeli officials said Trump

wants a deal with Iran, but any talks were unlikely to be

successful at this point.

Investors took comfort from Trump's comments, sending Wall

Street's main indexes rallying to more than 1% on Monday, in

their biggest one-day rise since February 6. But the momentum

lost steam as uncertainty over the conflict lingered.

"It's like whiplash. You wake up every morning and wonder

what it's going to be next ... Investors are still facing a

pretty wide range of outcomes with this and a lot of it depends

on time frame," said Christopher O'Keefe, managing director and

lead portfolio manager at Logan Capital Management.

Meanwhile, concerns around private credit 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. Ares and Apollo shares

fell 2.7% and 3.1%, respectively.

The companies' decisions mirror those of BlackRock ( BLK )

and Morgan Stanley ( MS ) earlier this month.

Peers Blackstone and Blue Owl Capital slipped

over 2% each, while KKR lost 3.5%. The S&P 500

financials index was off 0.7%.

A majority of the S&P 500's 11 major industry sectors

dropped. Energy was an exception, gaining 1.7% tracking

higher oil prices.

At 10:02 a.m. ET, the Dow Jones Industrial Average

fell 307.94 points, or 0.67%, to 45,900.53, the S&P 500

lost 40.56 points, or 0.62%, to 6,540.44 and the Nasdaq

Composite lost 181.39 points, or 0.83%, to 21,765.37.

The conflict in the Middle East 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.

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.

Among individual movers, shares of Jefferies gained

3.3% 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.

Janus Henderson ( JHG ) added 3.3% after Trian Capital and

General Catalyst raised their offer price for the company to $52

per share from $49.

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

index on Tuesday 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.

Declining issues outnumbered advancers by a 2.84-to-1 ratio

on the NYSE and by a 2.7-to-1 ratio on the Nasdaq.

The S&P 500 posted 15 new 52-week highs and 16 new lows,

while the Nasdaq Composite recorded 18 new highs and 93 new

lows.