Wall Street’s reaction to higher oil prices on Tuesday was more muted than in the early phases of the Iran war, with U.S. stocks holding up even as crude climbed. The Associated Press reported that oil prices resumed their rise because of the war with Iran, but equities showed steadier performance this time around, breaking—at least temporarily—from a pattern in which stock prices had often moved in the opposite direction of oil.
Stocks gained across major indexes: the S&P 500 rose 0.2% after adding to its previous day’s rally, which the report said was the biggest since the war began. The Dow Jones Industrial Average climbed 46 points, or 0.1%, and the Nasdaq Composite rose 0.5%, with the S&P 500 ending the session up 16.71 points to 6,716.09. The Nasdaq Composite finished up 105.35 points at 22,479.53, while the Dow added 46.85 to 46,993.26.
Oil’s advance came with a reminder of the market fear that a long-term disruption to global oil flows could lift prices for long enough to weigh on the global economy. The report said higher gasoline prices could strain household budgets and could also lead companies to pass along higher transportation costs to customers. Despite that concern, the session’s oil gains moderated: the price for a barrel of benchmark U.S. crude rose 2.9% to settle at $96.21, and Brent crude climbed 3.2% to settle at $103.42, after both pared bigger gains earlier in the morning.
Several company developments helped support pockets of the market. Delta Air Lines provided a signal on demand after raising its forecast for revenue for the first three months of 2026, saying it expects demand to accelerate into March from both businesses and households. Delta’s stock jumped 6.6%, and the report said it helped other airline stocks trim their sharp losses for the year so far, with United Airlines rising 3.2% and Southwest Airlines up 2.2%. American Airlines gained 3.5% after it said it was also likely to report stronger revenue growth for the start of 2026 than it had previously forecast.
Technology and other growth-oriented stocks also found buyers. Uber Technologies rose 4.2% after announcing it plans to expand its partnership with Nvidia, including plans to launch a fleet of autonomous vehicles using Nvidia’s technology beginning with Los Angeles and San Francisco in the first half of next year.
In financials, some stocks rebounded from earlier losses. Blue Owl Capital rose 4.5%, and Ares Management climbed 6.6% as part of the sector’s move described in the report, which said those gains helped offset a drop for Cencora. Cencora fell 3.2% after the pharmaceutical sourcing and distribution services company said it is looking for a new chief financial officer, with its current CFO, James Cleary, set to retire at the end of June.
Interest rates remained part of the backdrop for traders. The Associated Press said Treasury yields climbed on expectations that higher oil prices would prevent the Federal Reserve from cutting interest rates for a while, and it cited a 10-year Treasury yield easing to 4.20% from 4.23% late Monday. The report said the yield remained above a 3.97% level it was at before the war with Iran began.
With the Federal Reserve due to make its next interest-rate announcement Wednesday afternoon, the report said traders saw virtually no chance of a cut, citing data from CME Group. It also noted that President Donald Trump has angrily called for rate cuts, and that cuts would likely boost the economy and job market but could also worsen inflation.
Outside the United States, the report said European indexes rose after a mixed finish in Asia, with indexes up 0.8% in London and down 0.9% in Shanghai. In Australia, the central bank raised interest rates, with the Reserve Bank of Australia making its first hike since November 2023, citing higher fuel prices.