WASHINGTON (dpa-AFX) - After showing a strong move to the upside early in the session, stocks have given back ground over the course of the trading day on Tuesday. The major averages have pulled back well off their highs of the session but remain in positive territory.
Currently, the major averages are posting modest gains. The Dow is up 116.23 points or 0.3 percent at 47,062.64, the Nasdaq is up 93.48 points or 0.4 percent at 22,467.66 and the S&P 500 is up 22.17 points or 0.3 percent at 6,721.55.
The early strength on Wall Street came as traders attempted to shrug off the recent volatility shown by the price of crude oil, which has been a key driver of trading in recent sessions.
Stocks extended the significant rebound seen in the previous session even as the price of crude oil recovered from yesterday's pullback.
Crude oil for April delivery has pulled back well off its highs but currently remains up by more than 1 percent after plunging by more than 5 percent during Monday's trading.
The rebound by the price of crude oil comes after Iran launched a series of attacks on the United Arab Emirates, targeting Dubai's international airport and the Fujairah oil port, marking a sharp escalation in the ongoing conflict.
The Israeli military also said it had begun a 'wide-scale wave of strikes' across Iran's capital and was also stepping up strikes on Iran-backed Hezbollah targets in Lebanon.
Meanwhile, several U.S. allies, including Germany, Spain, Italy, Australia and Japan have declined President Donald Trump's request to secure the Strait of Hormuz, a vital artery for a fifth of global energy shipments.
Traders may be reluctant to make more significant moves ahead of the Federal Reserve's announcement of its latest monetary policy decision on Wednesday.
While the Fed is widely expected to leave interest rates unchanged, traders are likely to pay close attention to central bank officials' latest projections.
Sector News
Oil service stocks have moved sharply higher along with the price of crude oil, driving the Philadelphia Oil Service Index up by 2.6 percent.
Significant strength is also visible among airline stocks, as reflected by the 2.1 percent jump by the NYSE Arca Airline Index. The strength in the sector comes after several airlines raised their revenue guidance for the first quarter.
Oil producer, telecom and brokerage stocks are also seeing considerable strength on the day, while pharmaceutical stocks have shown a notable move to the downside.
Eli Lilly (LLY) has helped lead the pharmaceutical sector lower, tumbling by 5.5 percent after HSBC Securities downgraded its rating on the drug maker's stock to Reduce from Hold.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Tuesday. Japan's Nikkei 225 Index edged down by 0.1 percent and China's Shanghai Composite Index slid by 0.9 percent, while South Korea's Kospi jumped by 1.6 percent.
Meanwhile, the major European markets have all moved to the upside on the day. While the U.K.'s FTSE 100 Index is up by 0.9 percent, the German DAX Index is up by 0.7 percent and the French CAC 40 Index is up by 0.6 percent.
In the bond market, treasuries are extending the strong upward move seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is down by 2.2 basis points at 4.198 percent.
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