Wall Street moved higher on Tuesday as investors reacted to signs of progress in negotiations over the Iran conflict, while technology stocks extended gains and easing bond yields provided additional support, according to reports.
Market Performance
The S&P 500 rose 0.5 percent after trading resumed following Monday's holiday. The Dow Jones Industrial Average gained 53 points, or 0.1 percent, while the Nasdaq Composite climbed 0.8 percent in early trade. All three indexes were trading close to record highs.
Iran Conflict Developments
The gains followed comments from US President Donald Trump, who said negotiations with Iran were proceeding nicely, although fighting in the region continued. The US military said it had carried out self-defense strikes in southern Iran, including on missile launch sites and boats laying mines.
Oil Price Volatility
Oil prices remained in focus after sharp volatility in recent sessions. Brent crude, the international benchmark, rose 3 percent to $96.25 a barrel, recovering part of Monday's 7.1 percent decline. US crude, meanwhile, fell 3.8 percent to $92.99 after trading resumed following the Memorial Day holiday. Oil prices have dominated global financial markets since the US and Israel launched strikes on Iran in late February. The conflict led to disruptions in shipping through the Strait of Hormuz, a route critical to global oil supplies.
Sector Impacts
Hopes of easing tensions boosted shares of companies with large fuel costs. United Airlines rose 4.5 percent, while cruise operator Carnival gained 3.7 percent. Lower oil prices also pushed Treasury yields lower, helping reduce pressure across financial markets. The yield on the 10-year Treasury note declined to 4.48 percent from 4.56 percent on Friday.
Technology Stocks Lead
Technology stocks continued to support market gains amid optimism around artificial intelligence-driven demand. Micron Technology surged 11.2 percent after UBS analysts led by Timothy Arcuri raised their 12-month price target on the stock to $1,625 from $535, making it one of the biggest contributors to gains in the S&P 500.
Individual Stock Movements
The gains offset losses in some individual stocks. AutoZone dropped 8.2 percent after reporting quarterly revenue that came in slightly below analysts' expectations, although profit exceeded estimates. Chief executive Phil Daniele said the retailer's Brazil and Mexico businesses had performed below expectations.
Earnings Season Context
Most large US companies have reported profit and revenue for early 2026 above analysts' estimates, helping drive Wall Street to record levels despite uncertainty surrounding oil prices and the Iran conflict.
Global Markets Mixed
Across global markets, trading was mixed. South Korea's Kospi rose 2.5 percent after reopening following a holiday, while London's FTSE 100 gained 0.7 percent. Shares of BP fell 4.7 percent in London after the company removed its chairman over what it described as concerns regarding important governance standards, oversight and conduct. Japan's Nikkei 225 slipped 0.2 percent after hitting a record high in the previous session.
