NEW YORK (AP) — The U.S. stock market saw a boost on Tuesday, catching up with global markets that rose the day before. President Donald Trump mentioned that negotiations with Iran to end the ongoing conflict were “proceeding nicely.”
The S&P 500 increased by 0.8% after a break for the holiday, while the Dow Jones Industrial Average dipped slightly by 25 points, or 0.1%. In contrast, the Nasdaq composite surged by 1.3%. All three indexes are approaching record highs.
Market optimism persists despite ongoing fighting in the region. The U.S. military reported recent “self-defense” strikes in southern Iran targeting missile sites and boats laying mines. There have been similar market rallies on hopes for peace, but the conflict often continues despite these anticipations.
Brent crude oil prices rose by 3.8% to $99.80, rebounding slightly after a 7.1% drop on Monday. Meanwhile, U.S. crude fell by 3% to $93.74. The volatility in oil prices has become central to financial discussions since U.S. and Israeli forces attacked Iran in February, prompting fears of supply issues in the Strait of Hormuz and contributing to global inflation.
Optimism about improved oil supply has positively affected companies with significant fuel costs. United Airlines shares climbed by 6.6%, and cruise operator Carnival saw a rise of 3.5%.
Falling oil prices also contributed to lower yields in the U.S. bond market, easing some pressure on Wall Street. The yield on the 10-year Treasury fell to 4.49%, down from 4.56%. This provides a bit of relief after recent increases in bond yields around the globe, which posed risks to economic growth and investments. High yields have escalated long-term mortgage rates to their highest levels since last summer, potentially hindering companies’ borrowing for new projects.
Tech stocks continued their upward trend, with Micron Technology soaring by 17.7% after analysts at UBS raised their price target for the stock significantly. Demand for computer memory is expected to remain strong, and Micron’s stock has tripled this year.
However, not all companies fared well. AutoZone’s stock fell by 11.6% after reporting slightly lower-than-expected revenue, despite exceeding profit expectations. CEO Phil Daniele noted that performance in Brazil and Mexico was below plans.
Overall, most major U.S. companies have reported profits and revenues for the early part of 2026 above expectations. This strong performance is helping U.S. stocks hit new records, despite uncertainty regarding oil prices and the conflict with Iran.
U.S. households are feeling the strain of rising inflation, leading to declines in consumer confidence. A recent report indicated a dip in consumer sentiment, although it wasn’t as low as economists had anticipated. This follows a record low sentiment report from the previous week.
Internationally, stock markets showed mixed results. South Korea’s Kospi jumped by 2.5%, benefiting from a holiday closure, while London’s FTSE 100 added 0.5% despite a 5.1% drop for BP after the ousting of its chairman over governance concerns. Japan’s Nikkei 225 fell by 0.2% from its all-time high set just yesterday.
In this uncertain economic landscape, understanding trends in oil prices and their impact on global markets is crucial. As inflation continues to affect consumer confidence, experts suggest keeping an eye on how these factors evolve in the coming months.
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Financial markets, Iran war, Donald Trump, Stocks and bonds, Oil and gas industry, General news, AP Top News, Timothy Arcuri, World news, Phil Daniele, BP Plc, Washington news, Business, AutoZone, Inc., Energy markets, Micron Technology, Inc., Iran, Carnival Plc, World News
