Traders are looking ahead to the Friday jobs report, which should give more insight into the strength of the economy and the Fed's next rate move.

That could be an encouraging signal for the more comprehensive report on the U.S. job market due to arrive Friday from the U.S. government. The dominant question hanging over Wall Street has been whether the job market can keep holding up after the Federal Reserve earlier kept interest rates at a two-decade high.

Major defense stocks advanced Tuesday after Iran launched missiles at Israel, raising the odds of a wider conflict. Lockheed Martin was among the S&P 500's best performers, while RTX shares hit an all-time high.

Defense stocks, including Lockheed Martin and Northrop Grumman, were on the rise after Iran fired missiles at Israel in the latest escalation in the Middle East. With the first anniversary of the Oct.

U.S. stocks fell, with the Nasdaq losing more than 1%, on Tuesday as investors grew more cautious after Iran fired missiles at Israel. Iran launched the salvo of ballistic missiles in retaliation for Israel's campaign against Tehran's Hezbollah allies.