US stocks advanced for a second straight session on Tuesday, with the S&P 500 climbing 1.2% to 6,967, its highest close since February 2. The Dow Jones Industrial Average added 318 points, while the Nasdaq rose 2%. Sentiment was supported by growing optimism that the US and Iran may soon resume negotiations, boosting hopes for a potential agreement to end the conflict and reopen the Strait of Hormuz.
Communication services and consumer discretionary shares led the rally, while energy stocks underperformed as oil prices declined. In corporate news, major banks continued to release quarterly results. JPMorgan slipped 0.7% after lowering its net interest income guidance, and Wells Fargo dropped 5.7% on weaker-than-expected results.
Johnson & Johnson rebounded to close 0.9% higher after raising its 2026 revenue outlook. BlackRock climbed 3% and Citigroup gained 2.6% on strong earnings. American Airlines surged 8% following reports that United Airlines CEO Scott Kirby has floated the idea of a potential merger.
