S&P 500, Nasdaq Rally as Iran Deal Optimism Weighs on Oil

US equities pushed higher on Tuesday as easing geopolitical concerns lifted market sentiment, while oil prices pulled back sharply. Comments from Donald Trump about potential further negotiations with Iran boosted confidence that tensions could cool, supporting a broader risk-on move. The S&P 500 climbed around 1.1% and edged closer to record territory, while the Nasdaq Composite surged nearly 2%, extending its recent rally. The Dow Jones Industrial Average also advanced, though at a more modest pace. Softer-than-expected US producer price data helped ease inflation concerns, reinforcing optimism in equities.

At the same time, improving expectations around a potential extension of the US-Iran truce weighed on energy markets. West Texas Intermediate dropped to the low $90s after a steep decline, while Brent crude slipped toward the mid-$90 range. Investors remain focused on developments around the Strait of Hormuz, as any disruption or reopening of flows could quickly shift the outlook for oil prices.