- The S&P 500 gained 1.79% to close at a fresh record 7,736.52, its first since June, while the Dow and Nasdaq also advanced.
- Oil prices moved lower after Treasury Secretary Scott Bessent said in an interview that the U.S. and Iran could reach a Strait of Hormuz deal as soon as Tuesday or Wednesday.
- Chip stocks rallied, continuing their comeback from a July washout.
- More than 84% of S&P 500 companies that have reported earnings beat expectations, according to FactSet.
U.S. stock markets surged on Tuesday, with the Dow Jones Industrial Average leaping over 1,000 points, closing at 54,085.88, a 1.71% increase. The S&P 500 also hit a record high of 7,736.52, boosted by strong earnings reports from major companies.12
The optimism was fueled by strong earnings from companies like Caterpillar, which reported an adjusted $8.17 per share on revenue of $20.54 billion, and Palantir, which exceeded expectations. More than 84% of S&P 500 companies that have reported earnings this season have beaten forecasts, according to FactSet.6
Additionally, Treasury Secretary Scott Bessent indicated that the U.S. and Iran were close to a deal to reopen the Strait of Hormuz, which would allow commercial ships to navigate freely. Bessent stated, "We are in talks with the Iranians. There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict." This news contributed to a decline in oil prices, as hundreds of ships currently stuck in the Persian Gulf could soon exit.34
Market analysts noted the positive sentiment, with Thierry Wizman from Macquarie Group commenting, "From watching the stock market zoom higher over the past three sessions, you wouldn't think there's anything wrong with the world." The Nasdaq Composite also rose by 2.59%, closing at 26,584.99, reflecting a broad market rally.
“The S&P 500 closed at 7,736.52 and the Dow at 54,085.88, while the Nasdaq gained 2.59% to 26,584.99. More than 84% of S&P 500 companies that reported earnings beat expectations, per FactSet, and chip stocks continued their comeback from a July washout.”
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