Wall Street stocks climbed early on Tuesday, extending the market’s recent rally as strong corporate earnings and falling oil prices boosted investor sentiment.
The gains came after US Treasury Secretary Scott Bessent said the United States could reach an agreement with Iran by Wednesday to reopen the Strait of Hormuz, a key global oil shipping route.
Bessent made the comments during an interview with CNBC, triggering a sharp decline in oil prices as investors reacted to the possibility of an easing of tensions between Washington and Tehran.
Iran, however, has denied that it is engaged in talks with the United States to resolve the more than five-month conflict. Previous US statements suggesting that an agreement could be imminent have also failed to materialise.
About five minutes after trading began, the Dow Jones Industrial Average had risen 1.3 per cent to 53,832.40.
The broader S&P 500 gained 0.6 per cent to 7,644.30, while the technology-heavy Nasdaq Composite advanced 1.1 per cent to 26,185.99.
The Dow had closed at a record high on Monday, supported by lower oil prices and gains in several major technology companies.
Corporate earnings also contributed to Tuesday’s positive sentiment.
Caterpillar surged 11.7 per cent in early trading after reporting its latest results, while Palantir jumped 17.6 per cent following its earnings announcement.
Pfizer, however, fell 0.9 per cent after reporting a loss linked to unfavourable clinical trial results.
Investors are closely monitoring developments around the US-Iran conflict, with any progress towards reopening the Strait of Hormuz likely to influence oil prices and broader financial markets.
