The CBOE Volatility index, Wall Street's fear gauge, closed up 3.4 points at 22.64, marking its biggest one-day points gain in more than a month and its highest closing level since Aug. 8.

Wall Street looked shaky during its opening on Wednesday, with U.S. stocks fluctuating as investors navigate a surge in oil prices amid ongoing tensions in the Middle East. The S&P 500 slipped 0.3 percent, while the Dow Jones Industrial Average dipped by 14 points or less than 0.1 percent and the tech-heavy Nasdaq composite dropped 0.4 percent.

It’s no secret that betting on defense suppliers when geopolitical tensions ratchet higher pays off — at least in the short term. But Wall Street says there’s more to this latest rally.  Escalating tensions in the Middle East sent shares of weapons and plane makers to records last week,