US stocks closed higher on Tuesday, with all three major indexes advancing as easing oil prices and a strong earnings backdrop lifted investor sentiment despite ongoing geopolitical tensions in the Middle East.
The Dow Jones Industrial Average rose 356 points, or 0.7%, while the S&P 500 gained 0.8% after hitting an all-time intraday high.
The Nasdaq Composite climbed 1%, also reaching a fresh record during the session.
Oil retreat supports equity rally
A key driver of the market’s strength was a broad decline in crude prices, which helped ease concerns around inflation and input costs.
U.S. West Texas Intermediate crude futures fell 3.9% to settle at $102.27 per barrel, while Brent crude dropped 3.99% to close at $109.87.
The pullback in oil came as investors reacted to signs that the fragile ceasefire between the U.S. and Iran remains intact despite recent flare-ups.
Defense Secretary Pete Hegseth said Tuesday that the ceasefire “certainly holds” and noted that “two US commercial ships, along with American destroyers, have already safely transited the strait, showing the lane is clear.”
His comments followed remarks from President Donald Trump earlier this week that the US would “guide” stranded ships through the Strait of Hormuz.
While tensions persist in the region, markets appeared to take comfort in the absence of a major escalation, allowing equities to push higher.
Earnings strength drives broad-based gains
Investor sentiment was further supported by another round of stronger-than-expected corporate earnings.
Shares of DuPont rose about 8% after the company reported first-quarter results that beat expectations and raised its outlook.
US-listed shares of Anheuser-Busch InBev also climbed roughly 8% following upbeat quarterly results.
Elsewhere, Pinterest surged after forecasting second-quarter revenue above analyst estimates, while Archer-Daniels-Midland gained on stronger margins and better-than-expected profit.
Not all reactions were positive.
Palantir Technologies (NASDAQ: PLTR) fell about 7% despite reporting results that exceeded expectations and raising full-year guidance, highlighting the selective nature of investor responses.
According to FactSet data, roughly 85% of S&P 500 companies that have reported so far have beaten expectations.
Tajinder Dhillon of LSEG noted that companies are on track to deliver aggregate earnings growth of 28% year over year for the first quarter, marking the strongest quarterly profit growth since 2021.
AI momentum and economic signals in focus
Technology and AI-related stocks continued to play a central role in the rally.
The Philadelphia Semiconductor Index surged to a record high, with chip stocks gaining ahead of key earnings releases.
AMD rose 6% in after-market trading after reporting strong earnings.
Market participants have increasingly focused on AI-driven demand as a key growth driver across sectors.
Economic data released Tuesday provided a mixed but generally supportive backdrop.
US job openings fell to 6.866 million in March, slightly above expectations, reinforcing the view of a resilient labor market.
Meanwhile, the Institute for Supply Management’s services index came in at 53.6, just below forecasts.
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