S&P 500 Nudges Higher as Rally Grinds forward, Oil Worries Still Hang Over Markets

CNBC, the Wall Street Journal, AP, Bloomberg, Investor’s Business Daily, and Market Watch contributed to this report.

Wall Street kept its little bounce going Tuesday, with the benchmark climbing about 0.3% after yesterday’s pop — but don’t call this a clean breakout. The rally looks fragile and is still being driven by headlines from the Iran war and gyrating oil prices.

The tech-heavy index and the blue-chip gauge both moved up modestly, helping stocks extend yesterday’s momentum without blowing the roof off. Oil was the wild card: crude popped more than 2% in early trade and Brent settled back above the triple-digit mark, reminding traders that the supply shock story isn’t close to being resolved.

Travel and leisure led the day’s winners. Expedia Group and Booking Holdings jumped after airlines issued upbeat guidance — a sign that consumers are still spending on vacations even as gas and ticket costs tick up. Carriers were cheered by strong guidance from several big names: Delta Air Lines, American Airlines and JetBlue Airways all signaled stronger demand, which helped travel stocks rally despite higher jet-fuel prices.

Energy remained a market focal point, with oil producers and ETFs hovering near highs after the latest supply concerns. Names such as Exxon Mobil Corporation, APA Corporation and BP plc were among the movers as traders priced in longer disruption risk. Smaller producers — including ConocoPhillips, Coterra Energy and Devon Energy Corporation — also climbed as the sector outperformed.

The geopolitical script hasn’t calmed: the Strait of Hormuz remains the bottleneck that everyone’s watching, and a lack of allied support for escort missions has markets betting that the shipping choke point could stay dicey for a while. Meanwhile, the president weighed in on plans to escort tankers, and his comments briefly rattled risk appetite before traders resumed buying.

Investors are also keeping one eye on the central bank — the Federal Reserve is expected to hold rates steady at this week’s meeting, and traders aren’t pricing in cuts anytime soon. That leaves yields fairly elevated, which acts as a brake on big rallies in growthy, high-multiple names.

Tech heavyweight moves helped, too: an AI-and-autonomy deal boost sent a few chip and software names higher, and a fresh corporate update on autonomous-vehicle partnerships lifted sentiment in related plays. Meanwhile, beaten-down financial stocks bounced back, helped by a bit less fear around loan risks tied to software and AI disruptions.

Bottom line: it’s a cautious, headline-driven market — stocks are shrugging off another oil uptick for now, but the tape is fragile. If oil keeps climbing or the geopolitical picture worsens, the rally could fade fast; if central banks hint at easing later this year and shipping calms down, traders will likely buy the dip again.