Global stocks rose Tuesday for a second straight session, even as the war in Iran pushed oil prices higher. U.S. crude reached $95.63 a barrel, while Brent hit $102.81, though both pulled back from earlier highs.
The S&P 500 gained 0.40%, led by a 1.4% jump in energy stocks. The Dow rose 137.81 points to 47,083.55; the Nasdaq added 0.53%. MSCI’s global stock index climbed 0.63%, its first two-day gain in three weeks.
Delta Air and American Airlines boosted travel shares despite fuel costs, citing strong spring demand. Analysts say markets are looking past near-term inflation fears, betting the conflict won’t be prolonged.
The Reserve Bank of Australia hiked rates to 4.1%, warning of inflation risks from the Middle East. Markets now price in fewer Fed rate cuts this year-just 27 basis points-and expect the ECB may hike instead of cut.
UAE gas operations remain suspended after Iranian attacks. A fire at Fujairah’s oil terminal underscored regional supply risks. The Strait of Hormuz remains largely closed.
Investors await policy signals from the Fed, ECB, BoE, and other central banks meeting for the first time since the war began. The Fed is expected to hold rates steady, with a cautious tone likely.
The U.S. 10-year yield dipped to 4.198% but remains up 24 basis points for March. The dollar weakened slightly to 99.56, while the yen held near 158.97-below the Bank of Japan’s intervention threshold.