S&P 500 rebounds from Monday’s decline as oil prices ease: Live updates

The S&P 500 rebounded on Tuesday following a losing session on Wall Street with oil prices and bond yields in focus.

The S&P 500 gained 0.6% and the Nasdaq Composite rose 1.2%. The Dow Jones Industrial average added 20 points.

West Texas Intermediate oil futures dropped nearly 5% Tuesday after rising to start the week, as traders monitored Israel’s expected retaliation to Iran missile attacks and U.S. efforts to stave off a wider war in the region.

“The war seems to be on the forefront of everybody’s mind,” said Robert Pavlik, senior portfolio manager at Dakota Wealth Management. “Bigger picture is the election and there are a lot of uncertainties revolving around taxes and how that’s going to impact earnings potentially going forward.”

Technology shares powered higher Tuesday, with Nvidia and Apple last up 3% and 2%, respectively. Meta Platforms, Tesla and Microsoft rose at least 1% each.

Stocks have been volatile this month as fears of an escalating conflict in the Middle East mount. Rising bond yields have also weighed on the market as of late, with the 10-year Treasury yield touching its highest level since Aug. 1 Tuesday.

The market rallied a bit to end last week after a blockbuster jobs report. The Dow even managed to notch a new all-time closing high on Friday. But that enthusiasm faded this week as investors reasoned that now the Federal Reserve may not be as aggressive with future rate cuts with the labor market still strong, leading the major averages to a losing session Monday.

Short-term economic data has further signaled a resilient economy, boosting fears that the Federal Reserve may “drag their feet” on interest rate cuts from here, added Dakota’s Pavlik.