US stock markets traded higher in early deals on Tuesday even as crude oil prices resumed their upward movement, signalling a more stable investor response after sharp volatility linked to the ongoing war with Iran.
The S&P 500 rose 0.7 per cent in early trading, coming off its strongest session since the conflict began. The Dow Jones Industrial Average advanced 428 points, or 0.9 per cent, as of 9:35 a.m. Eastern time, while the Nasdaq Composite gained 0.6 per cent, AP reported.
Oil prices moved higher again, though still below last week’s closing levels. The price of benchmark US crude increased 1.1 per cent to $94.53 a barrel, while Brent crude, the global benchmark, climbed 1.9 per cent to $102.15.
Financial markets have been wary that a prolonged disruption to global oil supplies could push prices sharply higher and weigh on economic growth.
Airline stocks provided support to the broader market after Delta Air Lines raised its revenue outlook for the first quarter of 2026, citing accelerating demand from both corporate and leisure travellers into March. The company said that despite higher jet fuel costs, strong bookings could help it deliver profit in line with earlier forecasts.
Delta’s shares surged 4.9 per cent, lifting sentiment across the sector. American Airlines gained 4 per cent and United Airlines rose 3.7 per cent.
Technology stocks also contributed to gains. Uber Technologies jumped 5.2 per cent after announcing an expansion of its partnership with Nvidia to launch a fleet of autonomous vehicles using the chipmaker’s technology, with services planned initially in Los Angeles and San Francisco next year. Nvidia’s stock edged up 0.4 per cent. A day earlier, chief executive Jensen Huang said he expects demand for artificial intelligence chips to grow to $1 trillion through 2027.
Market participants have taken comfort from the historical pattern of US equities recovering relatively quickly from geopolitical conflicts, provided oil prices do not remain elevated for a prolonged period. Despite recent volatility, the S&P 500 remains less than 4 per cent below its record high.
In the bond market, the yield on the 10-year US Treasury eased to 4.20 per cent from 4.23 per cent late Monday, though it remains well above the 3.97 per cent level seen before the Iran conflict began. Higher yields have raised expectations that the Federal Reserve may delay interest rate cuts, as rising oil prices could add to inflationary pressures.
The Fed is scheduled to announce its next policy decision on Wednesday, and traders see virtually no chance of a rate cut, according to CME Group data.
Elsewhere, global markets showed mixed trends. European indices moved higher after a varied close in Asia, where stocks gained 0.8 per cent in London but slipped 0.9 per cent in Shanghai.
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