Wall Street opened higher on Tuesday as renewed hopes of diplomatic progress in the Middle East lifted investor sentiment, even as markets digested fresh corporate earnings and softer-than-expected inflation data.
The S&P 500 rose 0.39%, while the Dow Jones Industrial Average added about 45 points or 0.09%.
Nasdaq-100 climbed 0.76%, extending momentum from the previous session when equities rallied despite geopolitical uncertainty.
Middle East optimism lifts sentiment
Markets appeared encouraged by reports that delegations from the US and Iran could resume talks in Pakistan this week, raising the prospect of a diplomatic off-ramp to the ongoing conflict.
This followed comments from President Donald Trump indicating that Iran remained open to negotiations, though he reiterated that any deal would require Tehran to forgo nuclear weapons.
Despite the breakdown in weekend talks, Wall Street has shown resilience.
Major indexes posted gains on Monday, with the S&P 500 recouping most of its losses since the conflict began. The Nasdaq-100 has also logged a nine-day winning streak, its longest rally since September 2025.
Earnings season and inflation data in focus
Investors are also turning their attention to corporate earnings and macroeconomic indicators for further direction.
March producer price data showed that inflation at the wholesale level rose less than expected, offering some relief to markets concerned about persistent price pressures.
Commentary from Federal Reserve policymakers later in the day is expected to provide additional insight into how the central bank views the economic impact of the conflict and recent inflation trends.
A busy slate of earnings reports is shaping sentiment across sectors. BlackRock rose 2.9% after reporting higher first-quarter profit, supported by strong inflows into its exchange-traded funds and increased performance fees.
However, reactions to bank earnings were mixed. JPMorgan Chase declined after cutting its net interest income guidance despite reporting better-than-expected results, while Wells Fargo also fell following disappointing figures. Citigroup edged higher, while Johnson & Johnson slipped after its results.
Stock movers highlight sector trends
Technology stocks continued to provide support to the broader market. Oracle rose nearly 6.5%, building on strong gains from the previous session.
Elsewhere, airline stocks showed notable strength. United Airlines and American Airlines rose 1.1% and 6.2%, respectively, amid reports of potential consolidation in the sector.
Shares of Globalstar jumped more than 8.6% after Amazon agreed to an $11.57 billion deal to acquire the satellite company, highlighting continued investment in space-based communications infrastructure.
Meanwhile, oil prices, which had surged on Monday following the US blockade in the Strait of Hormuz, edged lower on Tuesday, helping to ease some inflation concerns.
As markets balance geopolitical risks with improving earnings visibility and easing inflation pressures, investors remain focused on whether the current momentum can be sustained in the coming weeks.
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