(Updates with index/price moves and macroeconomic data from the first paragraph.)
US equity indexes jumped as strong earnings helped the S&P 500 and the Dow Jones Industrial Average break records, while sliding crude oil and government bond yields reflected optimism that the Strait of Hormuz could soon reopen.
The Nasdaq Composite jumped 2.6% to 26,584.99, the S&P 500 advanced 1.8% to 7,736.52, and the Dow Jones Industrial Average climbed 1.7% to 54,085.88 at the close Tuesday. Both the S&P 500 and the Dow hit their respective all-time highs of 7,758.21 and 54,272.60 earlier in the session, according to data compiled by CNBC.
Technology was the standout gainer, followed by materials and industrials. Energy led decliners.
Palantir Technologies (PLTR) surged more than 29%, the top gainer on the S&P 500 and the Nasdaq, after Q2 sales and adjusted earnings surpassed analysts' estimates and the company, one of the most prominent names in the artificial intelligence industry, boosted its full-year 2026 revenue outlook.
VanEck Semiconductor Exchange-Traded Fund (SMH), with net assets of $77.2 billion, jumped 5.6%.
Caterpillar (CAT) raised its full-year revenue outlook on Tuesday after single-quarter sales topped $20 billion for the first time. Shares jumped 5.6%, the Dow's leader.
Iranian Foreign Ministry spokesman Esmaeil Baghaei said Iran and Oman are continuing talks aimed at ensuring the safe flow of traffic through the Strait of Hormuz, with discussions focused on designating safe inbound and outbound lanes, Al Jazeera, a Middle Eastern broadcaster, reported. Iran's goal in its talks with Oman "is to set temporary arrangements" - lasting up to three months - where Tehran can control a route through the strait, an official told CNN.
Iran is considering allowing European nations to remove mines from the strait, a potential climbdown that could form part of a deal to normalize shipping in the waterway and ease peace negotiations with the US, Bloomberg reported. US Treasury Secretary Bessent said a deal to open the Strait could come as early as "today or tomorrow," allowing "freedom of movement" for commercial vessels, the news report said.
Front-month US West Texas Intermediate crude oil sank 6% to $75.52 a barrel, and global benchmark North Sea Brent slumped 5.6% to $79.07 a barrel.
US Treasury yields dropped, with the 10-year down 6.9 basis points to 4.62%. The two-year yield slid 6.2 basis points to 4.19%.
Gold futures rose 1.1% to $4,134.1, and silver futures climbed 3.2% to $59.73.
US job openings fell to 7.359 million in June, per the Bureau of Labor Statistics, below the 7.454 million openings expected in a Bloomberg-compiled poll and down from the 7.537 million openings reported in May. The June print represents 4.4% of total employment, lower than 4.5% in May but up from 4.3% a year ago.
New orders for US factory goods slipped 0.3% in June, versus a 0.2% gain expected in a Bloomberg-compiled survey and a revised 1.1% drop in May. Excluding a 0.1% decline in transportation orders, new orders would have been down 0.4% after a 2% gain in May, compared with expectations for a 0.4% increase.
Redbook US same-store sales jumped 8.7% from a year ago in the week ended Aug. 1, following an 8.3% advance in the previous week.