U.S. Stock Market Climbs as Iran Negotiations Progress
NEW YORK (AP) — On Tuesday, the U.S. stock market experienced a notable increase, following a positive trend in international markets. This upturn came after President Donald Trump announced that negotiations with Iran aimed at ending their ongoing conflict were “proceeding nicely.”
The S&P 500 index gained 0.5% after reopening post-Monday’s holiday. The Dow Jones Industrial Average rose by 53 points, or 0.1%, and the Nasdaq composite saw an increase of 0.8%. All three indices are now close to their highest values ever.
These gains occurred despite ongoing military actions in the region. The U.S. military conducted strikes in southern Iran, focusing on missile sites and boats believed to be laying mines. The stock market has previously reacted positively to hopes of a resolution in the conflict, even as fighting continued.
Brent crude oil, an international benchmark, saw its price rise by 3% to $96.25, recovering a portion of the 7.1% drop it experienced on Monday. In contrast, U.S. crude oil prices dropped by 3.8% to $92.99 after the holiday trading break.
Oil prices have been a significant factor in the market’s movement since the U.S. and Israel began military actions against Iran in late February. This conflict has affected oil shipping routes through the Strait of Hormuz, resulting in supply bottlenecks in the Persian Gulf and subsequent inflation pressures globally.
The optimism around a peaceful resolution has positively impacted airline and cruise stocks, with United Airlines climbing 4.5% and Carnival Cruise Lines increasing by 3.7%.
Lower oil prices also led to reduced yields in the U.S. bond market, providing some relief for investors. The yield on the 10-year Treasury note dropped to 4.48%, down from 4.56% late last week.
This drop in yields comes as bond markets worldwide have seen increases recently, creating concerns about slowing economic growth and stock prices. High bond yields have also pushed U.S. mortgage rates to their highest level since last summer, potentially limiting companies from securing loans for investments, including artificial intelligence data centers that have bolstered the economy.
Tech stocks continued to perform well, driven by excitement over artificial intelligence innovations. Micron Technology surged 11.2% after UBS analysts raised their price target for the stock from $535 to $1,625.
However, AutoZone faced an 8.2% decline after the retailer reported slightly lower revenue than expected for its latest quarter, although its profits still surpassed estimates.
Most major U.S. companies have been reporting profits and revenues for the first part of 2026 that beat analysts’ expectations, contributing to record highs in U.S. stocks despite uncertainties regarding oil prices and the ongoing conflict with Iran.
Internationally, stock markets showed mixed results. South Korea’s Kospi index rose by 2.5% as it recovered from a holiday break. London’s FTSE 100 increased by 0.7%, even as British oil company BP saw a 4.7% drop in its stock after the ousting of its chairman over serious governance concerns. Meanwhile, Japan’s Nikkei 225 fell by 0.2%, retreating from a recent all-time high.
AP Business Writer Elaine Kurtenbach contributed to this report.
