The effects of Hurricane Katrina began to be felt on the New York equities markets on Tuesday, a combination of soaring oil prices, news of damage to the infrastructure in the areas affected that will cost insurers billions of dollars, and closures of retailers in the region hit by the storm.

Not even a report of increased consumer confidence in August helped much. The Dow Jones Industrial Average fell 0.5 percent on the day to close at 10,412.82, the Nasdaq composite lost 0.4 percent to 2,129, and the S&P 500 closed down 0.3 percent to 1,208.41.

All areas of the transport sector felt the effect of high oil prices. Delta Airlines, which was already near bankruptcy, lost 5.5 percent to $1.20 as the Amex airline index fell 3 percent to 46.75.

Ground transport was not immune either, as United Parcel Service fell 1.1 percent to $70.42 and rail freight company CSX declined by 1.7 percent to $44.85.

Insurers and reinsures dropped as damage estimates in the hurricane zone rose. Hartford Financial Services lost nearly 0.3 percent to $73.15, while American International Group declined by 0.4 percent to $59.28. Retailers and restaurants were down on the day, with many of them suffering closures in the storm-affected areas.

Wal-Mart lost 1 percent to $45.19 after it said that 123 of its stores had been closed due to the hurricane. Jewelry retailer Tiffany lost 2.6 percent to $33.31. Office supply chain Staples lost 2.9 percent to $21.85.

The oil sector, on the other hand saw substantial gains. Refiner ConocoPhillips was up 2.1 percent to $64.41, while oilfield services company Halliburton saw the value of its shares rise 3.5 percent to $59.84.