Wall Street ended higher on Tuesday, with gains in Delta Air Lines and other travel stocks, while the US Federal Reserve began its two-day policy meeting amid investors' worries about high oil prices and the Middle East conflict.

Shares of airlines and travel companies rebounded from losses in recent weeks related ⁠to the US and Israeli attack on Iran and surging energy prices.

Delta rallied more than 6 percent and American Airlines Group gained 3.5 percent after both companies raised their revenue guidance for the current quarter. United Airlines rose 3.2 percent.

Norwegian Cruise Line Holdings climbed over 2 percent and Expedia Group jumped more than 4 percent.

Concerns of prolonged supply disruptions due to the closure of the Strait of Hormuz shipping route have kept crude prices near US$100 a barrel.

Worries about high oil prices will be in sharp focus as Fed policymakers weigh inflation concerns against signs of a weakening jobs market.

The central bank started its two-day monetary policy meeting on Tuesday and traders expect the Fed to keep borrowing costs unchanged in its decision on Wednesday.

Rate futures ⁠suggest expectations of one 25-basis-point cut toward the end of the year, according to LSEG-compiled data, down from around ⁠two before the war.

Worries about pricey AI-related stocks, along with uncertainty about the Middle East conflict, have dropped the S&P 500 about 4 percent from its record high close on January 27.

The S&P 500 rose 0.3 percent, to 6,716, the Dow rose 0.1 percent, to 46,993, while the Nasdaq rose 0.5 percent, to 22,479. (AFP)



Edited by Cecil Wong