US stocks advanced modestly on Tuesday, bolstered by strong performances from major firms like UnitedHealth Group, which exceeded profit forecasts. Meanwhile, oil prices stayed largely unchanged amid hopes that the US and Iran could avert a severe economic fallout from their ongoing conflict.
The S&P 500 increased by 0.1%, rebounding from only its second decline in the past two weeks and nearing a new record peak. The Dow Jones Industrial Average gained 264 points, while the Nasdaq composite saw a slight rise of under 0.1%.
In energy markets, US benchmark crude fell 14 cents to $87.28 per barrel, and Brent crude, the global benchmark, dropped 47 cents to $95.01 per barrel.
The conflict with Iran has interrupted oil flows through the Strait of Hormuz, a key route for roughly one-fifth of the world’s oil supply, driving up energy costs. US President Donald Trump has called for Iran to permit unrestricted passage through the strait along its southern edge and has enforced a blockade on Iranian harbors.
Iran’s lead negotiator, Mohammed Bagher Qalibaf, who also serves as the parliamentary speaker, stated on social media that his country would not engage in talks amid threats. Trump sent conflicting signals about the conflict’s future, indicating he plans to send a delegation headed by Vice President JD Vance to Islamabad for discussions, though Iran has refused participation unless demands are eased. Trump noted it is ‘highly unlikely’ he will extend the ceasefire set to end on Wednesday.
Analysts at Mizuho Bank described the situation as a fragile truce, questioning whether negotiations could lead to a resolution that halts the war as the two-week deadline approaches.
Current oil prices are significantly below the $119 per barrel peak for Brent seen during height of concerns, and the S&P 500 remains above pre-conflict levels.
In corporate developments, Apple’s shares showed little change after the company revealed that CEO Tim Cook will step down on September 1, handing over to hardware engineering chief John Ternus. Cook, 65, has led the firm for 15 years, during which its market value grew by over $3.6 trillion, fueled by iPhone success. He will continue as executive chairman.
UnitedHealth Group jumped more than 7% in early trading following first-quarter results that beat expectations, prompting an upward revision to its annual profit guidance.
Attention is also on Washington, where Kevin Warsh, Trump’s pick for Federal Reserve Chair, faces a Senate Banking Committee hearing. The former Fed official and investor may encounter scrutiny from Democrats over transparency issues related to his financial assets. A vote on his nomination remains unscheduled.
European markets midday showed gains: Germany’s DAX up 0.6%, Paris’s CAC 40 up 0.2%, and London’s FTSE 100 unchanged.
In Asia, Japan’s Nikkei 225 rose 0.9% to 59,349.17, boosted by technology stocks such as Tokyo Electron, up 3.5%, and SoftBank Group, up 8.5%, amid AI investment enthusiasm. South Korea’s Kospi surged 2.7% to 6,388.47, Taiwan’s Taiex climbed 1.8%, Hong Kong’s Hang Seng added 0.5% to 26,481.48, and Shanghai’s Composite edged up 0.1% to 4,085.08. Australia’s S&P/ASX 200 dipped less than 0.1% to 8,949.40.
