-- The Nasdaq Composite and the S&P 500 advanced to new highs on Tuesday as oil prices pulled back, while traders digested a fresh batch of corporate earnings reports.
The Nasdaq rose 1% to 25,326.1, while the S&P 500 climbed 0.8% to 7,259.2, both marking their highest finish ever. The Dow Jones Industrial Average advanced 0.7% to 49,298.3.
All sectors ended in the green, led by materials followed by technology. Intel (INTC), Micron Technology (MU), Apple (AAPL), and Cisco Systems (CSCO) were among the tech names that logged gains on Tuesday.
West Texas Intermediate crude fell 3.4% to $102.81 per barrel in afternoon trading, while Brent shed 3.6% to $110.31.
US Defense Secretary Pete Hegseth reportedly said that the ceasefire agreement with Iran remained intact despite renewed tensions in the Gulf region.
The comment came a day after Tehran fired missiles and drones at the United Arab Emirates, reigniting concerns about the fragile ceasefire between the US and Iran.
The US military destroyed six Iranian boats in the Strait of Hormuz on Monday after Tehran attacked US Navy ships and commercial vessels, CNN reported, citing Admiral Brad Cooper, the head of the US Central Command. A senior Iranian military official reportedly disputed that claim.
US Treasury yields were lower, with the 10-year rate down 2.1 basis points at 4.42% and the two-year rate falling 1.6 basis points to 3.95%.
In company news, Pinterest (PINS) shares jumped 6.8%. The image-sharing platform company posted better-than-expected first-quarter results late Monday and forecast up to 16% revenue growth year over year for the ongoing three-month period.
Shopify (SHOP) on Tuesday issued a second-quarter revenue outlook that implied a sequential slowdown in annual growth. The stock slid nearly 16%.
PayPal (PYPL) shares slumped 7.8% after the payments company said it was targeting at least $1.5 billion in cost cuts over the next few years, while it maintained its full-year earnings outlook.
Palantir Technologies (PLTR) shares dropped 6.9%, despite the software maker raising its 2026 revenue outlook and first-quarter results topping Wall Street's expectations.
In economic news, two surveys released Tuesday painted a mixed picture of the US services sector in April, with Institute for Supply Management data showing a deceleration in growth and an S&P Global (SPGI) report indicating a return to expansion.
"The services sector continues to expand, but the sharp cooling in new orders alongside still-subdued employment momentum suggests growth may be becoming less durable," TD Economics Senior Economist Vikram Rai said in a note.
On Friday, ISM and S&P surveys showed that the US manufacturing sector saw continued growth in April, though inflationary pressures intensified amid disruptions caused by the Middle East conflict.
New-home sales in the US grew past Wall Street's estimates for March, driven by a demand surge in the Northeast region, government data showed.
Gold rose 0.8% to $4,568.70 per troy ounce, while silver lost 0.3 % to $73.30 per ounce.