U.S. stocks rallied on Tuesday as a sharp pullback in oil prices relieved pressure from Monday’s geopolitical jitters, sending the S&P 500 and Nasdaq to fresh record closes. The session was underpinned by strong earnings from several major companies and renewed optimism that energy costs would not spiral higher following the weekend’s Iran-UAE tensions.
What Moved Markets
The S&P 500 (SPI:SP500) climbed 58.47 points, or 0.81%, to close at a record 7,259.22. The Dow Jones Industrial Average gained 356.35 points, or 0.73%, finishing at 49,298.25. The Nasdaq Composite advanced 1.03% to 25,326.13, also a new closing high. Small-caps outperformed broadly, with the Russell 2000 surging nearly 2% and touching a new intraday record.
The catalyst was a reversal in crude oil after Monday’s spike. West Texas Intermediate fell 3.9% to settle at $102.27 per barrel, while Brent crude dropped 4.0% to $109.87, as traders concluded that the Iran-UAE exchange of strikes over the weekend would not escalate into direct attacks on Iranian energy infrastructure. The cooling in oil gave equity markets room to refocus on a solid earnings season and resilient economic data.
Notable Movers
Intel (INTC) +14% — Shares surged on reports that the chipmaker may produce processors for Apple devices, a potentially transformational contract for its foundry business.
eBay (EBAY) +5.1% — GameStop disclosed an unsolicited, non-binding offer to acquire eBay for approximately $56 billion in cash and stock at $125 per share, sending eBay shares sharply higher.
Micron Technology (MU) +5% — Demand for high-bandwidth memory used in AI applications continues to outstrip supply, with reports that Micron’s HBM products are sold out through year-end.
Pfizer (PFE) +2.2% — Beat first-quarter earnings and revenue estimates, reporting $14.45 billion in revenue (up 5% year-over-year), and reaffirmed full-year guidance of $2.80–$3.00 in adjusted EPS.
Palantir (PLTR) -3% — Slipped after management’s forward guidance fell short of the market’s elevated expectations despite otherwise solid results.
Looking Ahead
Investors will be watching AMD’s after-hours results closely for further signals on AI chip demand. The broader earnings calendar remains busy through the week, with several large-cap reports still to come. On the macro front, traders will monitor any further developments in the Middle East — a renewed escalation could quickly reverse the oil-driven relief rally. For now, the combination of record index levels and strong corporate profits is keeping sentiment tilted firmly bullish heading into mid-week trading.