Stocks Rise Despite Surge in Oil Prices

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Despite a rise in oil prices, with US crude climbing 1.8% to $95.20 per barrel and Brent crude rising 2.4% to $102.58, the stock market saw gains on Tuesday. Airline stocks like Delta, United, and Southwest saw their shares rise, with Delta citing stronger demand from both businesses and households. Uber Technologies also saw a 4.2% jump after announcing an expansion of its partnership with Nvidia to launch a fleet of autonomous vehicles. The Federal Reserve is expected to make its next interest rate announcement on Wednesday, with traders seeing virtually no chance of a rate cut.

Why it matters

The stock market's ability to rise despite a surge in oil prices is notable, as stock prices have typically moved in the opposite direction of oil in recent months due to concerns that high energy costs could damage the global economy. This resilience suggests the economy may be weathering the oil price increases better than feared.

The details

Airline stocks saw significant gains, with Delta Air Lines raising its forecast for revenue growth in the first quarter of 2026 and saying it still expects to report a profit. Other airlines like United and Southwest also saw their shares rise. Uber Technologies announced an expansion of its partnership with Nvidia to launch a fleet of autonomous vehicles, driving its stock 4.2% higher. Some beaten-down financial stocks also recovered losses from earlier in the year.

• On Tuesday, the price for a barrel of benchmark US crude rose 1.8% to $95.20.
• Brent crude, the international standard, climbed 2.4% to $102.58 on Tuesday.
• The Federal Reserve will make its next announcement on interest rates on Wednesday afternoon.

What’s next

The Federal Reserve will make its next announcement on interest rates on Wednesday afternoon, and traders see virtually no chance of a rate cut.