(Updates with market moves at the end of the day, and other changes, if any.)
Stocks rose Tuesday as Wall Street appeared to dismiss rising trade tensions between the US and Canada.
The technology-heavy Nasdaq Composite added 0.7% to close at 26,151.30, while the S&P 500 climbed 0.3% to 7,677.28. The Dow Jones Industrial Average advanced 0.3% to settle at 53,577.40, extending its winning streak to a third day.
Most sectors were in the green, led by tech, while energy saw the steepest decline.
Canada on Tuesday announced retaliatory tariffs on roughly US$20 billion worth of the American goods, matching Washington's move "dollar for dollar."
Trade talks between the US and Canada collapsed late last week.
West Texas Intermediate crude oil fell 4.6% to $81.10 a barrel in Tuesday late-afternoon trade, while Brent slumped 5.3% to $87.31.
On Monday, the US Treasury Department launched an economic campaign to cut off financial channels that support Iran. Tehran expressed confidence that its major trading partners that include China, Russia and India will resist Washington's pressure campaign, according to CNBC.
China said its cooperation with Tehran should not be disrupted, CNN reported Tuesday.
"The market seems largely unfazed by Washington's push for tighter economic pressure on Iran, with traders treating the US effort to nudge partners away from Iranian trade as marginal rather than market-moving," ING Bank said in a report.
US Treasury yields were lower, with the 10-year yield down 7.9 basis points at 4.63% and the two-year yield falling six basis points to 4.18%.
In economic news, US consumer confidence fell in August amid a decline in the expectations index, with a "more pessimistic" outlook for business conditions and the labor market ahead, the Conference Board said.
New home sales in the US decreased more than projected last month even as median prices moved lower, government data showed.
Switching to monetary policy, the Federal Reserve may have to raise interest rates soon, unless inflation continues to cool, Boston Fed President Susan Collins said.
Markets are currently pricing in a 66% probability that the Fed will keep its benchmark rate steady in September, with the remaining odds in favor of a 25-basis-point hike, according to the CME FedWatch tool.
In company news, Dick's Sporting Goods (DKS) shares sank nearly 31%. The athletic goods retailer lowered its full-year outlook amid a challenging athletic footwear and apparel marketplace, while its fiscal second-quarter results fell short of market estimates.
McKesson (MCK) agreed to acquire Precision Medicine in a transaction worth roughly $2.25 billion as part of the drug distributor's efforts to strengthen its clinical research and commercialization services. McKesson shares jumped 3.6%.
Nvidia (NVDA) shares rose 2.2%, the second-biggest gain on the Dow and snapping a seven-day losing streak. The tech bellwether is scheduled to release its quarterly results on Wednesday.
Spot gold was up 0.4% at $4,668.41 per troy ounce, while silver rose 0.5% to $69.76 per ounce.
