Major US stock indices rose on Tuesday, led by financial stocks, while market participants weighed the impact of the Middle East war on global fuel prices.
Although crude oil values extended their recent climb, equities maintained an upward trajectory during early trading.
At the opening bell, the Dow Jones Industrial Average rose 139.1 points, or 0.30%, to 47,085.53. The S&P 500 rose 23.0 points, or 0.34%, to 6,722.35, while the Nasdaq Composite rose 83.9 points, or 0.37%, to 22,458.032.
The spike in oil prices following the regional conflict has weighed heavily on the stock market over the past several weeks.
“Investors are becoming desensitized to the big swings in oil” as long as it stays in the range of the past days because “investors are already pricing in higher oil prices,” said Adam Sarhan of 50 Park Investments, according to AFP.
Investors are simultaneously bracing for the Federal Reserve’s upcoming policy announcement on Wednesday. Analysts broadly anticipate that the US central bank to maintain current interest rates while gauging the economic disruptions caused by the ongoing war.
“There are too many moving parts in a regular economy and then on top of it, we have this tremendously impactful conflict, which will make it even more impossible for the Fed to discern any patterns right now,” said Peter Andersen, founder of Andersen Capital Management, according to Reuters.
“I would expect the Fed to stay on hold and to have a very unremarkable transcript and press conference,” added Andersen.
Key Stock Movers
Shares of Delta Airlines and American Airlines surged more than 4% as executives reported robust US travel demand that helped offset a hit from higher jet fuel costs.