Shares of energy companies ticked up as oil added to gains amid the renewal of hostilities between the U.S. and Iran over control of the Strait of Hormuz.
Oil futures have risen by more than 11% in the last two sessions, the largest two-day gain since April.
Iran struck three tankers near the Strait of Hormuz overnight. In response, the U.S. resumed heavy bombing of Iran.
"The abrupt shift from last month's U.S.-Iran Memorandum of Understanding toward renewed escalation has led markets to reprice supply risk," said Adam Turnquist, chief technical strategist at brokerage LPL Financial.
President Donald Trump said that "trade and investment deals" into the U.S. by Persian Gulf countries would replace the 20% toll on shipping he announced on Monday for cargo transiting the Strait of Hormuz.
