(Updates with index/price moves, macroeconomic data, and company news from the first paragraph.)
US equity indexes rose as earnings helped boost technology, and a slide in crude oil and government bond yields added to confidence that Iran is nearing a deal to reopen the Strait of Hormuz, the chokepoint for about a fifth of global crude oil and natural gas flows.
The Nasdaq Composite jumped 2.4% to 26,539.5, with the S&P 500 up 1.8% to 7,735.1 and the Dow Jones Industrial Average higher by 1.9% to 54,185.2. The S&P 500 and the Dow touched their respective 52-week highs intraday.
Technology was the standout gainer, followed by materials and industrials. Utilities led decliners.
Palantir Technologies (PLTR) surged 30%, 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 5.4%.
Caterpillar (CAT) raised its full-year revenue outlook on Tuesday after single-quarter sales topped $20 billion for the first time. Shares jumped 6.6%, the Dow's leader.
The prospect of a US-Iran deal appeared to be gaining traction on Tuesday, after Qatar said a proposal had been drafted and US Treasury Secretary Scott Bessent sounded hopeful on an agreement to reopen the Strait of Hormuz, 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, Al Jazeera, a Middle Eastern broadcaster, reported.
The front-month US West Texas Intermediate crude oil fell 5.1% to $76.26 a barrel, and global benchmark North Sea Brent slid 4.8% to $79.73 a barrel.
US Treasury yields dropped, with the 10-year down 5.7 basis points to 4.63%. The two-year yield slid six basis points to 4.2%.
Gold futures jumped 1.4% to $4,146.5, and silver futures advanced 3.8% to $60.04.
US job openings fell to 7.359 million in June according to the Bureau of Labor Statistics, below the 7.454 million openings expected in a survey compiled by Bloomberg and down from the 7.537 million openings reported in May. The June level represents 4.4% of total employment, down from 4.5% in May but up from 4.3% a year earlier.
New orders for US factory goods fell by 0.3% in June, versus expectations for a 0.2% increase in a Bloomberg-compiled survey and a revised 1.1% decrease in May. Excluding a 0.1% drop in transportation orders, new orders would have been down 0.4% after a 2% gain in May, compared with expectations for a 0.4% gain.
US home prices advanced further in Q2, with 80% of metro areas reporting price increases for single-family homes over the quarter, the National Association of Realtors reported Tuesday, up from 71% in the previous quarter.