Trump Slams NATO, Energy Sector Rallies As Fuel Prices Spike: What's Moving Markets Tuesday?

U.S. equities extended their rebound from four-month lows Tuesday as investors largely looked past a fresh surge in oil prices, reassessing last week’s stagflation fears ahead of the Federal Reserve’s rate decision on Wednesday.

• Micron Technology (NASDAQ:MU) stock rallied to record highs ahead of Wednesday’s earnings results. Check what implied move the option market is pricing in.

President Donald Trump declared the United States “does not need the help of anyone” after most NATO allies declined to join the military operation against Iran, writing that America had already “decimated Iran’s Military” — their navy, air force, anti-aircraft systems, and leadership “at virtually every level.”

West Texas Intermediate crude climbed 1.5% to $94.90 a barrel and Brent crossed back above $101, reversing Monday’s energy-market relief rally after Iran escalated attacks on Persian Gulf energy infrastructure overnight.

Israel also reported killing Iran’s security chief — a development that reinforced the view that the conflict is far from resolved.

The Federal Reserve kicked off its two-day policy meeting, with its rate decision due Wednesday.

No change to the 3.75% fed funds rate is expected. But all attention is on the updated Summary of Economic Projections — the dot plot — as policymakers try to model the economic impact of surging energy prices on both growth and inflation.

Markets are currently pricing in just one 25-basis-point cut, no earlier than December. The 10-year U.S. Treasury yield edged down nearly 2 basis points to 4.20%. The 30-year yield settled at 4.85%.

By midday trading in New York, the S&P 500 rose 0.4% to 6,722 points, while the Nasdaq 100 slightly outperformed the broader market.

Tuesday’s Performance In Major U.S. Indices

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF (NYSE:VOO) rose 0.34%.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.36%.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 0.59%.
• The iShares Russell 2000 ETF (NYSE:IWM) traded 0.32% higher.

Asset Managers Surge On Private Credit Reassessment

The Financial Select Sector SPDR Fund (NYSE:XLF) led all 11 S&P 500 sectors on Tuesday, gaining 1.4%, as traders walked back last week’s fears over potential defaults in large private-sector software loans.

KKR & Co. Inc. (NYSE:KKR), Blackstone Inc. (NYSE:BX), BlackRock, Inc. (NYSE:BLK), and Blue Owl Capital Inc. (NYSE:OWL) all jumped between 3% and 6%, staging some of the sharpest recoveries among large-cap financials.

Separately, Qualcomm Incorporated (NASDAQ:QCOM) gained 3% after announcing a higher dividend and a $20 billion share buyback program — a show of capital confidence that stands out in the current volatile environment.

NVIDIA Corporation (NASDAQ:NVDA) inched lower despite bullish remarks from CEO Jensen Huang. Speaking at the company’s GTC 2026 conference in San Jose, Huang projected that Nvidia will generate $1 trillion in AI chip revenues by 2027.

Energy stocks led the market, with the Energy Select Sector SPDR Fund (NYSE:XLE) climbing 1.6% as fuel prices continue to rally. According to the American Automobile Association, the average price for a gallon of diesel crossed $5 for the first time since 2022.

Goldman Sachs warned that the supply disruption in fuels is even worse than the one in the oil market.

Meanwhile, the Health Care Select Sector SPDR Fund (NYSE:XLV) underperformed, falling 0.6% after HSBC downgraded Eli Lilly (LLY) from ‘Hold’ to ‘Reduce’ and cut its price target from $1,070 to $850, pointing to expected headwinds in the obesity-drug market and growing pricing pressure.

Russell 1000’s Top 5 Gainers And Losers On Tuesday

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