US stocks close higher despite escalating Middle East tensions

US stocks ended higher on March 17, benefiting from the momentum seen on Wall Street in the previous session, despite oil prices resuming their upward trend amid escalating military tensions in the Middle East.

The Dow Jones Industrial Average inched up 0.1%, or 46 points, to 46,993 points.

The broader S&P 500 index gained 0.25%, or 16 points, to 6,716 points, while the Nasdaq Composite added 0.47%, or 105 points, to 22,479 points.

In Europe, the Stoxx Europe 600 index increased 0.67% to 602 points, amid positive performance in the oil and gas, utilities, insurance, and telecommunications sectors.

The UK’s FTSE 100 edged up 0.83% to 10,403 points, Germany’s DAX rose 0.71% to 23,730 points, and France’s CAC 40 climbed 0.49% to 7,974 points.

In Japan, the Nikkei 225 remained unchanged at 53,700 points, while the broader Topix index climbed 0.45% to 3,627 points.

In oil markets, Brent crude futures for May delivery rose 3.2% (+$3.21) to $103.42 per barrel.

US Nymex crude futures for April delivery added 2.9%, or $2.71, to $96.21 per barrel.

As for gold, futures for April delivery gained 0.11%, or $6, to $5,008.2 per ounce.

What’s Driving the Market?

Markets were supported by gains in luxury, aviation and energy stocks amid optimism over efforts to secure navigation in the Strait of Hormuz, though sentiment was capped by Europe’s rejection and escalating attacks on Middle East oil facilities.