Wall Street catches up to the gains made by other markets around the world the day before

U.S. stock markets rebounded Tuesday, catching up to global gains from Monday, when President Donald Trump suggested Iran war negotiations were progressing. The S&P 500 rose 0.5%, the Dow Jones Industrial Average climbed 53 points (0.1%), and the Nasdaq composite increased 0.8%, all nearing record highs despite continued conflict in the region. The U.S. military reported self-defense strikes in southern Iran, including attacks on missile launch sites and mine-laying boats, while oil prices reacted sharply: Brent crude jumped 3% to $96.25, recovering slightly from a 7.1% Monday drop, while U.S. crude fell 3.8% to $92.99. The war between the U.S., Israel, and Iran—triggered by February attacks—has disrupted global oil flows, closing the Strait of Hormuz to most tankers and trapping crude in the Persian Gulf. This bottleneck has driven up prices and fueled inflation worldwide, though temporary optimism over a potential deal briefly lifted stocks for fuel-dependent companies like United Airlines (+4.5%) and Carnival (+3.7%). Lower oil prices also eased pressure on U.S. bond yields, with the 10-year Treasury yield dropping from 4.56% to 4.48%, reducing strain on stocks and mortgages. Technology stocks led gains, with Micron Technology surging 11.2% after UBS analyst Timothy Arcuri raised its 12-month price target to $1,625 from $535. The move offset declines like AutoZone’s 8.2% drop, which reported weaker-than-expected revenue despite beating profit forecasts; CEO Phil Daniele cited underperformance in Brazil and Mexico. Most major U.S. companies have outperformed expectations for 2026, supporting stock records despite oil volatility and geopolitical risks. Internationally, markets showed mixed results: South Korea’s Kospi rose 2.5%, London’s FTSE 100 gained 0.7% despite BP’s 4.7% drop after its chairman was ousted over governance concerns, and Japan’s Nikkei 225 fell 0.2%, slipping from its all-time high. The respite in yields follows recent global bond market rallies, which had threatened to slow economic growth and dampen investments, including AI data center expansions critical to U.S. economic momentum.