-- US equity indexes advanced in midday trading on Tuesday as optimism over the resumption of Iran peace talks sent crude oil futures sharply lower, and after mega-cap banks reported quarterly earnings.
The Nasdaq Composite jumped 1.7% to 23,578.7, the S&P 500 climbed 1% to 6,952.9, and the Dow Jones Industrial Average advanced 0.5% to 48,456.4. S&P 500 has reportedly clawed back all of its post-Iran-war declines and, according to CNBC-compiled data, the index is trading close to an all-time high of about 7,002.3.
Consumer discretionary, communication services, and technology led the gainers. Energy was by far the worst performer among a trio of decliners.
President Donald Trump remains open to resuming in-person negotiations soon if he believes Iran is ready to submit to his demands, CNN reported, citing people familiar with the matter. He said that "something could be happening" over the next two days in Pakistan, where previous talks faltered.
In Islamabad on Saturday, American negotiators proposed a 20-year pause on Iran's enrichment of uranium, a source familiar with the talks told CNN. Iran responded with a proposal for a five-year suspension, which the US has rejected, a US official was cited as saying.
West Texas Intermediate crude oil futures sank 6.7% to $92.34, and Brent crude futures slumped 4.4% to $94.96.
In precious metals, gold futures jumped 1.5% to $4,838.50 and silver futures soared 5.2% to $79.59.
The CBOE Volatility Index dropped 3.6% to 18.44.
In company news, Citigroup (C) and BlackRock (BLK) reported Q1 earnings and revenue growth above market expectations. JPMorgan Chase (JPM) also delivered a better-than-expected quarter.
United Airlines (UAL) Chief Executive Scott Kirby proposed a potential combination with American Airlines (AAL) during a late February meeting with President Donald Trump, Reuters reported Monday, citing two unnamed sources familiar with the matter.
In economic news, the US Producer Price Index rose by 0.5% in March, the same as in February and below the 1.1% gain expected in a Bloomberg-compiled survey. Energy prices jumped by 8.5% in the month after a 2.1% gain in the previous month due to a 15.7% surge in gasoline prices. Excluding food and energy, core PPI edged up 0.1%, below the 0.4% gain forecast and slower than the 0.3% gain reported in February.
Most US Treasury yields fell, with the 10-year down 2.3 basis points to 4.27% and the two-year retreating 1.5 basis points to 3.78%.
The International Monetary Fund now expects 2.3% US economic growth in 2026, a downward adjustment from its 2.4% estimate set out in January and compared with the 2.1% growth reported in 2025. The IMF also revised down its 2026 global growth outlook in its World Economic Outlook update released Tuesday.