Wall Street rebounded on Tuesday as US stocks moved higher while oil prices pulled back from recent gains. Investors monitored a fragile US-Iran ceasefire, renewed tension around the Strait of Hormuz, economic data, and corporate earnings.
US stocks recovered after the previous session’s sell-off, with major indexes moving higher in morning trading. The Dow Jones Industrial Average rose 250.95 points, or 0.51%, to 49,192.85. The S&P 500 gained 47.98 points, or 0.67%, to 7,248.73, while the NASDAQ Composite added 206.72 points, or 0.83%, to 25,274.52.
The NASDAQ also touched a new intraday record as investors returned to technology shares. Besides, nine of the 11 main S&P 500 sectors traded higher. Consumer discretionary stocks led the advance with a 1.21% gain, while advancing shares outpaced decliners on both the NYSE and NASDAQ.
Oil prices fell even as traders continued to track unrest around the Strait of Hormuz. Brent crude dropped about 1.6% but remained above $110 per barrel. West Texas Intermediate crude also declined, trading above $102 per barrel.
The ceasefire between the United States and Iran remained uncertain after fresh exchanges near the key shipping route. Defense Secretary Pete Hegseth said the ceasefire ‘certainly holds,’ adding that two US commercial ships and American destroyers had safely moved through the strait.
However, investors remained cautious because the route carries a large share of global oil supplies. BlackRock Investment Institute analysts led by Wei Li said, “even US equities won't be insulated” if the Strait of Hormuz does not reopen.
Joe Saluzzi, Co-Head of Equity Trading at Themis Trading, also raised doubts about the rally. “Earnings have been better than expected, which has been great, considering the valuations,” he said. “There are certainly big issues out there that I think the market is overlooking and that might come back to haunt us.”
Corporate earnings helped support market sentiment. Archer-Daniels-Midland rose 5.8% after reporting better-than-expected first-quarter profit, supported by higher margins. DuPont gained 8% after raising its annual profit forecast.
Pinterest shares jumped 14% after the company issued a stronger second-quarter revenue forecast. Pfizer also edged higher after beating first-quarter earnings and revenue estimates, while reaffirming its full-year outlook.
However, Palantir shares fell despite reporting stronger quarterly results and raising its full-year guidance. Investors focused on cost concerns after the company said expenses may rise in 2026.
Intel shares climbed after Bloomberg reported that Apple held early-stage talks with Intel and Samsung about making main processors for its devices. The report suggested Apple may seek to broaden its chip supply base beyond Taiwan Semiconductor Manufacturing Company.
Intel gained more than 9% in early trading, while chip stocks also attracted broader buying interest. Micron rose after Fitch upgraded its credit rating, adding to strength across the semiconductor sector.
Economic data also gave mixed signals. US job openings slipped to 6.866 million in March but came in slightly above estimates. Meanwhile, the ISM services index fell to 53.6 in April, showing continued expansion but slower momentum.
Overall, the market rebound reflects strong investor confidence driven by earnings and tech momentum, but ongoing geopolitical tensions and mixed economic signals may continue to keep volatility in focus.