US equities extended their broad gains on Tuesday as easing energy prices improved the credit outlook. The S&P 500 and the Dow Jones Industrial Average each rose 0.5%, while the Nasdaq 100 was little changed, consolidating the prior session’s rebound. Oil and fuel prices declined amid signs of de-escalation since the weekend, opening the door to potential talks between Tehran and Washington on an agreement that could restore energy exports.
Equities also drew support from a rebound in Treasuries as investors reassessed the likelihood of a Federal Reserve rate hike later this year. Fixed-income markets will face another key test tomorrow with the release of May’s inflation data, which is expected to show a further increase.
Asset managers rallied sharply as markets dialed back concerns over private credit redemptions, with Blackstone and KKR each gaining about 5%. Alphabet and Meta rose 2% apiece, recovering some recently-lost ground. In the AI sector, OpenAI confidentially filed for an IPO and Anthropic secured additional funding, underscoring expectations of continued heavy investment in AI infrastructure, even as chipmakers paused their recent advance.
