US stocks traded higher on Tuesday as the Dow Jones Industrial Average reached an intraday record. Falling oil prices supported market sentiment after reports of progress toward a US-Iran peace agreement.
At 9:42 a.m. Eastern Time, the Dow rose 360.77 points, or 0.70%, to 52,031.80. The S&P 500 added 0.10% to 7,561.78, while the NASDAQ Composite gained 0.13% to 26,719.01.
The Dow advanced for a fourth session, helped by gains in financial stocks. Goldman Sachs rose 1.3%, JPMorgan added 1.8%, and Bank of America increased 1.2%. Financial shares led the 11 S&P 500 sectors with a 1.1% gain. Seven sectors traded higher as investors moved toward banks, industrial companies, and economically sensitive groups.
Caterpillar supported the blue-chip index. Meanwhile, advancing stocks outnumbered declining shares two to one on the New York Stock Exchange. The S&P 500 stayed close to its early June record after a pullback. The index recorded 12 new 52-week highs and no new lows, while the NASDAQ posted 46 new highs and 31 new lows.
SpaceX shares climbed as much as 13% as the stock extended its post-IPO run. The company priced its public offering at $135 and traded near $212 on Tuesday. The rise pushed SpaceX’s market value above Amazon and Microsoft. Its valuation reached between $2.7 trillion and $2.94 trillion.
The company also said it would acquire software firm Anysphere for $60 billion. The deal would expand SpaceX’s position in enterprise artificial intelligence software. Additionally, options trading on SpaceX shares began Tuesday. Traders are assessing the company’s high valuation, share gains, and exposure to space and artificial intelligence markets.
Oil prices extended Monday’s decline as investors reacted to reports that the United States and Iran had agreed to end military operations. Brent crude fell 3% to near $80 per barrel, while West Texas Intermediate dropped to around $77.
Lower energy prices weighed on the S&P 500 energy sector, which fell 0.4%. Still, cheaper oil supported transport, consumer, and industrial shares by reducing cost and inflation concerns.
President Donald Trump said the Strait of Hormuz would reopen on Friday and remain toll-free. Pakistani Prime Minister Shehbaz Sharif said both sides had declared an end to military operations. Still, shipping groups warned that traffic could take weeks to recover. Their comments raised doubts about how quickly trade routes and insurance conditions would return to normal.
Investors now await the Federal Reserve’s decision on Wednesday. The central bank is expected to keep interest rates at 3.50% to 3.75%. Markets will focus on Fed Chair Kevin Warsh’s comments on inflation, jobs, and growth. Inflation remains more than one percentage point above the central bank’s 2% target.
Thomas Hayes of Great Hill Capital said, “All eyes are on Warsh’s press conference, guidance and expectations for the market.” He added that new Fed chairs often face periods of volatility. Traders assign a 42% chance to a quarter-point rate increase in December. Rate cuts are not expected until after the middle of 2027.
Wells Fargo raised its 2026 year-end S&P 500 target to 7,950. The new level points to 5.2% upside from Monday’s close of 7,554.29. The bank increased its 2026 earnings-per-share estimate for S&P 500 companies to $340 from $315. Its 2027 forecast rose to $390 from $365.
Wells Fargo linked the higher target to stronger earnings, lower geopolitical risk, and investor sentiment after the market decline.
Elsewhere, Qualcomm rose 3.6% after reports that it was in talks to buy AI chip startup Tenstorrent for $8 billion to $10 billion. Robinhood gained 1.1% after plans to cut 10% of its workforce.
With Wall Street gaining momentum from easing oil prices and strong corporate developments, investors now look toward the Federal Reserve’s policy signals for the next major market direction.
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