Stocks increased on Tuesday, even after peace talks between the United States and Iran faltered, as traders remained hopeful that an agreement could still be reached. The S&P 500 rose by 1.18%, closing at 6,967.38, now just under 1% from its 52-week high. The Dow Jones Industrial Average gained 317.74 points, or 0.66%, finishing at 48,535.99, while the Nasdaq Composite surged by 1.96% to reach 23,639.08.
Technology shares boosted the market again. Oracle increased by 4.7%, following a rise of more than 12% the previous day. Nvidia and Palantir Technologies also reported significant gains. Despite the geopolitical concerns, Wall Street demonstrated resilience, achieving strong results to begin the week. President Donald Trump mentioned that Iran was keen to make a deal, which may have contributed to the optimistic sentiment.
The rise on Monday reversed losses that the S&P 500 had faced since the onset of the Iran conflict. Investment strategist Ross Mayfield commented that while a re-escalation is possible, it seems unlikely, given that the market is adjusting to levels of anxiety about Iran, returning closer to past highs amid a beneficial earnings season.
On Tuesday, a White House official indicated that a second round of negotiations with Tehran may take place, though no firm date had been set. Oil prices shifted direction, with West Texas Intermediate crude futures dropping by 7.87% to $91.28 a barrel, and Brent crude falling 4.6% to $94.79. Market sentiment was also aided by the lower-than-expected producer price index for March. However, some companies faced pressure after releasing lackluster earnings. Wells Fargo’s disappointing results caused its stock to fall over 5%, while JPMorgan Chase posted better-than-expected figures but reduced its income forecast, leading to a slight decline in its stock price.
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