US stocks showed modest gains by midday on Tuesday, with the Dow Jones Industrial Average rising approximately 100 points. Market participants continued to monitor the impact of the US-Iran conflict on crude oil and other sectors. Oil prices surged about 4% on Tuesday, with Brent crude holding steady above the key $100 per barrel threshold.
The Dow increased by 122.66 points, or 0.26%, to 47,069.07. The Nasdaq Composite advanced 89.14 points, or 0.40%, to 22,463.32, while the S&P 500 rose 23.49 points, or 0.35%, to 6,722.87.
Fluctuating oil prices and the repercussions of the Iran conflict continued to influence investor sentiment.
Oil prices climbed during early trading on Tuesday as energy market participants closely watched ongoing supply disruptions. International Brent crude futures for May delivery rose 3% to $103.21 per barrel, and US West Texas Intermediate crude for April delivery increased 3.2% to $96.52 per barrel.
Oil prices have surged roughly 40% since the onset of the US-Iran conflict, reaching their highest levels since 2022, due to significant disruptions to shipping through the Strait of Hormuz. Last week, Brent crude closed above $100 per barrel for the first time in four years.
The rebound in oil prices followed remarks from former President Donald Trump suggesting that a coalition aimed at protecting shipping through the Strait of Hormuz was still being formed.
On Monday, Trump told reporters that some countries were "less enthusiastic" about plans to assist in escorting tankers through the Strait of Hormuz. He urged other nations to "participate quickly and enthusiastically."
Trump stated, "Some countries are very enthusiastic—they are already acting. They are already there. We will give you a list. Some are very enthusiastic, some are less so, and I think some will not participate. I believe one or two countries that we have protected for about 40 years, spending tens of billions of dollars, will not take part."
Oil prices have risen sharply since the US and Israel launched strikes against Iran, driven by concerns that a prolonged closure of the Strait of Hormuz could lead to global energy supply disruptions.
Investors are closely watching further developments in the conflict. According to Israeli Defense Minister Israel Katz, Iranian Security Minister Ali Larijani was killed in an overnight airstrike.
While many attribute the ongoing stock market rally to a relatively strong economy, controlled inflation, and robust corporate earnings, Holly Mazzocca, President of Bartlett Wealth Management, noted on Monday that "risks to this growth story are accumulating."
Mazzocca commented, "The year began on a fairly solid foundation, but notably, the labor market has shown clear signs of softening. For investors, the key question now is to realistically recognize that the overall risks to this continued growth narrative are higher today than they were a few weeks ago."
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