US sharemarkets rose on Tuesday, extending gains as investors looked past a breakdown in negotiations between the United States and Iran and focused on the possibility of a deal. The S&P 500 advanced 1.18% to close at 6,967.38, leaving it less than 1% below its 52-week high. The Dow Jones Industrial Average added 317.74 points, or 0.66%, to 48,535.99, while the Nasdaq Composite gained 1.96% to 23,639.08.
Technology stocks again led the market higher, with Oracle rising 4.7% following a strong prior session. Nvidia and Palantir Technologies also posted gains, supporting the broader index. The rally has seen the S&P 500 recover losses recorded since the start of the war.
Markets continued to show resilience despite geopolitical uncertainty. Donald Trump said earlier this week that Iran had reached out regarding a potential agreement, while a White House official indicated a second round of talks is under discussion, though no timetable has been set.
Earnings season is underway, with major financial institutions including BlackRock, JPMorgan and Citigroup reporting results, providing further insight into the outlook for corporate earnings.
Oil and macro
Oil prices declined, reversing gains from the previous session. West Texas Intermediate crude fell 7.87% to settle at US$91.28 a barrel, while Brent crude dropped 4.6% to US$94.79.
The pullback in energy prices supported broader market sentiment. At the same time, US producer price index data came in below expectations, indicating softer wholesale inflation pressures and adding to the positive backdrop for equities.
Australian Market Outlook
Australian shares are set to open higher, tracking gains on Wall Street as global markets approach record levels. S&P/ASX 200 futures were up 34 points, or 0.38%, to 9,038.
Locally, investors will be watching corporate updates, with Amplitude Energy and Evolution Mining due to report quarterly results. Reserve Bank of Australia deputy governor Andrew Hauser is also scheduled to speak in Washington.
