Traders work on the floor at the New York Stock Exchange, March 17, 2026.
Brendan McDermid | Reuters
The S&P 500 rose on Tuesday as Wall Street built on the momentum seen in the previous session amid developments in the Iran war.
The broad market index closed up 0.25% at 6,716.09, and the Nasdaq Composite climbed 0.47% to finish at 22,479.53. The Dow Jones Industrial Average added 46.85 points, or 0.1%, to end at 46,993.26.
Volatile oil prices and the fallout of the Iran war continue to influence investor sentiment. On Tuesday, oil prices resumed their ascent, with global benchmark Brent crude rising 3% — solidly above the $100 mark.
Despite the rise in oil prices, the S&P 500’s consumer discretionary group was notably up 1% on the day, led by gains in Expedia Group and Booking Holdings. Strong revenue guidance from airlines Delta and American boosted those names. The sector is down more than 2% this month, however.
Energy was the index’s leading sector, adding just above 1%. The move puts its month-to-date gains at more than 4%.
Oil prices
Oil’s bounce came after President Donald Trump suggested on Monday that a coalition to protect shipping along the Strait of Hormuz is still in the works. Then, on Tuesday, Trump said in a Truth Social post that the U.S. did not need help from NATO or other countries to carry out the escort plans.
“Fortunately, we have decimated Iran’s Military,” Trump said in the post. “Because of the fact that we have had such Military Success, we no longer “need,” or desire, the NATO Countries’ assistance — WE NEVER DID.”
Stocks eased from their highs following the post while crude ticked higher, suggesting investors hoped a coalition would take place.
“Investors remain hopeful that a quick and relatively painless solution to the situation will be found, and that it will prove to be the latest in a long, relatively unbroken series of dip-buying opportunities,” said Steve Sosnick, chief strategist at Interactive Brokers. “There is also a fair degree of residual FOMO, which is why … small bounces morph into relatively substantial upward moves, even if a fundamental reason appears to be lacking.”
Oil prices have surged since the start of the U.S.-Israel attacks on Iran on worries that a prolonged closure of the Strait of Hormuz could lead to a global disruption of energy supplies.
Wall Street is watching for further developments on the war, especially after Iran’s security chief, Ali Larijani, was killed in airstrikes overnight. That’s according to Israeli Defense Minister Israel Katz.
“Market participants may be assuming this is very similar to the Liberation Day tariffs imposed by the U.S., and that this will be a short-lived problem that ends once the U.S. chooses to withdraw from the military conflict,” said Kristina Hooper, chief market strategist at Man Group. “I think that is a mistaken assumption. Tariffs are a relatively simple problem for markets because they can be unilaterally withdrawn whenever the U.S. chooses to do so. Wars, unlike tariffs, cannot be turned on and turned off like a switch.”
