Wall Street stocks opened higher on Tuesday, extending a recent rally driven by strong corporate earnings and falling oil prices following comments from United States Treasury Secretary Scott Bessent on possible talks with Iran.
Bessent told CNBC that the United States could reach an agreement with Iran to reopen the Strait of Hormuz by Wednesday, a development that pushed oil prices lower as investors assessed the possibility of reduced geopolitical tensions.
Iran, however, has denied that negotiations are taking place to resolve the more than five-month conflict. Previous statements from US officials suggesting that a deal was close have also failed to produce an agreement.
Despite the uncertainty, lower oil prices boosted investor sentiment and supported gains across major US stock indexes.
About five minutes after trading began, the Dow Jones Industrial Average had risen 1.3 per cent to 53,832.40 points.
The S&P 500 gained 0.6 per cent to 7,644.30 points, while the technology-focused Nasdaq Composite Index climbed 1.1 per cent to 26,185.99 points.
The Dow closed at a record high on Monday, supported by declining oil prices and strong performances from several major technology companies.
In early Tuesday trading, industrial equipment manufacturer Caterpillar gained 11.7 per cent after releasing its earnings report, while data analytics firm Palantir surged 17.6 per cent following its financial results.
However, pharmaceutical company Pfizer moved in the opposite direction, falling 0.9 per cent after reporting a loss linked to disappointing clinical trial results.
Investors are continuing to monitor corporate earnings reports and developments in global energy markets as they assess the outlook for the US economy and financial markets.
