Wall Street Rallies as Oil Slides Nearly 4%; S&P 500, Nasdaq Close at Records

Traders work on the floor of the New York Stock Exchange. [Photo by Yonhap]

U.S. stocks rose across the board on Tuesday as crude oil fell nearly 4%, easing inflation worries and lifting risk appetite. The S&P 500 and the Nasdaq Composite both finished at record highs, supported by strength in chipmakers and expectations for solid corporate earnings.

The Dow Jones Industrial Average gained 356.35 points, or 0.73%, to close at 49,298.25. The S&P 500 added 58.47 points, or 0.81%, to 7,259.22, and the Nasdaq rose 258.32 points, or 1.03%, to 25,326.13. The S&P 500 and Nasdaq set all-time highs at the close.

Markets took comfort from signs of easing tensions in the Middle East. With a view spreading that a ceasefire between the United States and Iran was holding, oil prices cooled after surging a day earlier. Brent crude fell 4% to $109.87 a barrel, a move that helped temper inflation concerns and supported equities.

Semiconductor shares led the advance. Intel jumped 13% after reports that Apple is considering using Intel and Samsung Electronics for semiconductor production in the United States. AMD rose 4% ahead of its earnings report. The Philadelphia Semiconductor Index climbed 4.2% to a record, bringing its gain for the year to 55%.

Earnings expectations also underpinned the market. Reuters reported that first-quarter profits for S&P 500 companies are expected to rise 28% from a year earlier. All 11 sectors ended higher, with materials and information technology posting the biggest gains.

Treasury yields fell, with the 10-year U.S. Treasury yield slipping to around 4.42%. With oil stabilizing and earnings optimism building, investors focused more on corporate profits and demand for risk assets than on inflation shocks.

* This article has been translated by AI.

AJP