US sharemarkets ended modestly higher on Tuesday as investors built on the previous session’s gains while continuing to monitor developments in the Iran war. The S&P 500 rose 0.25% to close at 6,716.09, while the Nasdaq Composite added 0.47% to 22,479.53. The Dow Jones Industrial Average gained 47 points, or 0.1%, to finish at 46,993.26.
The gains were measured, with markets easing from earlier highs as geopolitical uncertainty remained elevated.
Oil rises as supply concerns linger
Energy markets remained a key driver of sentiment. Brent crude rose about 3% to remain above US$100 a barrel, reflecting ongoing concerns about supply disruptions linked to the Strait of Hormuz.
Oil prices moved higher after comments from President Donald Trump suggested plans for a multinational effort to secure shipping routes were still uncertain, adding to concerns about the duration of the conflict.
Sector moves and investor positioning
Energy stocks led gains across the S&P 500, while consumer discretionary shares also performed strongly, supported by airline outlooks and gains in travel-related companies. Despite the recent rebound, the sector remains lower for the month.
Technology stocks were mixed, with Nvidia edging lower despite continued focus on artificial intelligence demand.
Australian market outlook
Australian shares are expected to open slightly higher, tracking the positive lead from Wall Street. ASX 200 futures were up 12 points, or 0.1%, to 8,669.
Locally, investors will watch for updates from the Reserve Bank of Australia, including new economic and financial market forecasts, ahead of the release of its Financial Stability Review later in the week.
Overseas, attention will turn to the US Federal Reserve policy decision, due early Thursday AEDT, with markets focused on the outlook for interest rates.
