US stocks staged a recovery Monday after an early sell-off, with the S&P 500 and Nasdaq Composite turning positive by late morning as investors assessed Middle East tensions. The Dow Jones Industrial Average pared earlier losses while oil prices surged, with Brent crude jumping 13% before moderating. Energy stocks like Exxon gained while travel-linked shares, including Delta Air Lines, declined amid flight disruption concerns.

Markets remained focused on inflation risks and potential supply disruptions through the Strait of Hormuz, where tanker traffic has halted. Gold prices spiked to $5,400 an ounce before retreating, with JPMorgan forecasting a 10% "risk premium" gain for the precious metal. Treasury yields rose as traders reduced bets on interest-rate cuts, anticipating hotter inflation from higher energy costs.

The monthly jobs report Friday looms as the next critical market catalyst, with economists projecting 60,000 jobs added in February, down from January's 130,000 gain. The data will influence Federal Reserve policy expectations as investors navigate escalating geopolitical risks and market volatility that pushed the S&P 500 to a negative February finish.