NEW YORK (AP) — U.S. stocks are rising Tuesday even as oil prices resume rising. war with iran.
S&P 500 rises 0.6%, falls best day since the war started. As of 11 a.m. ET, the Dow Jones Industrial Average was up 262 points, or 0.6%, and the Nasdaq Composite was up 0.7%.
At least for now, usual playbook Stock prices have been on an upward trend since the war began. Reverse direction of oil price. Financial markets are concerned that in the long run, Disruption of global oil flows This is because wars can cause prices to rise over a long period of time, damaging the global economy.
On Tuesday, the price of benchmark U.S. crude oil rose 0.7% to $94.12 a barrel. The international standard Brent crude oil rose 0.9% to $101.03. However, the large rise since this morning has been contained and remains below last weekend’s level.
Delta Air Lines also sent an encouraging signal about the strength of the economy by raising its earnings outlook for the first three months of 2026. The company said it expects air travel demand to accelerate from both businesses and households heading into March.
Of course, the soaring price of crude oil has also caused the price of jet fuel to rise. However, the company said strong aviation demand meant it could report profits in line with earlier expectations in early 2026.
Delta Air Lines stock rose 3.9%, helping other airline stocks narrow their steep losses for the year so far. United Airlines rose 2.5% and Southwest Airlines rose 2.2%.
American Airlines rose 2.9%, saying it is likely to report stronger-than-expected revenue growth earlier this year.
Another big winner was Uber Technologies, which rose 5.5% after announcing an expanded partnership with Nvidia. They plan to launch a fleet of self-driving cars using Nvidia technology in the first half of next year, starting in Los Angeles and San Francisco.
Meanwhile, some struggling stocks in the financial industry have recovered their losses since the beginning of the year. That includes companies facing concerns about whether their software businesses and other industries that could be threatened by AI-powered competitors will be able to repay their loans in full. Blue Owl Capital rose 6.7% and Ares Management rose 5%.
The US stock market has A track record of recovery As long as oil prices don’t stay high for too long, they will recover relatively quickly from military conflicts in places like the Middle East. Many professional investors expect that to happen again, which has helped keep U.S. stocks near record levels.
about everything dramatic swing Over the past few weeks, including some shocking events hourlythe S&P 500 is less than 4% below its all-time high.
This is despite rising U.S. bond yields on expectations that the U.S. Federal Reserve will not resume interest rate cuts for some time due to soaring oil prices. Rising yields push down the prices of stocks and all types of investments.
The yield on the 10-year U.S. Treasury note fell to 4.19% from 4.23% late Monday, but remains well above the 3.97% level before the war with Iran began.
The Fed is scheduled to make its next interest rate announcement on Wednesday afternoon, but traders see virtually no chance of a rate cut, according to CME Group data.
A rate cut by the Fed would stimulate the economy and job market, and President Donald Trump is angrily calling for a rate cut. But cuts would also worsen inflation.
In Australia, the central bank is actually raising interest rates. The Reserve Bank of Australia has raised interest rates for the first time since November 2023, citing soaring fuel prices.
In overseas stock markets, European indexes rose after a mixed finish in Asian markets. In two big moves around the world, the index rose 1.1% in Paris and fell 0.9% in Shanghai.
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Associated Press writers Matt Ott, Elaine Kurtenbach and Rod McGuirk contributed.
