U.S. stocks pushed back toward pre-war highs Tuesday, with the S&P 500 reclaiming the 6,960 level and small caps leading a broad-based advance as investors cheered fresh signs of progress in U.S.-Iran negotiations that sent crude oil tumbling nearly 7%.
• What’s driving XLY shares up?
President Donald Trump fanned the de-escalation narrative in a midday interview with the New York Post, telling the paper that Iran talks “could be happening over the next two days” in Pakistan. The fresh Trump comments built on Vice President JD Vance‘s flagged “a lot of progress” in weekend talks with Iranian officials held in Islamabad.
On the macro front, producer inflation came in sharply below expectations in March, cooling inflationary concerns.
The S&P 500 rose 1.1% to 6,960, its highest level since late February, now trading at a striking distance from the 7,002-point all-time high reached in late January.
The Dow Jones Industrial Average climbed 347 points, or 0.7%, to 48,565. The Nasdaq 100 outperformed, advancing 1.5% to 25,776, on pace for its 10th straight session of gains — the longest streak since 2021.
Within Magnificent Seven stocks, Meta Platforms Inc. (NASDAQ:META) jumped 4.6%, Tesla Inc. (NASDAQ:TSLA) rose 3.9%, Amazon.com Inc. (NASDAQ:AMZN) gained 3.6% and NVIDIA Corp. (NASDAQ:NVDA) added 2.7%, while Apple Inc. (NASDAQ:AAPL) stock initially slipped, but recovered slightly.
The Russell 2000 led the major benchmarks with a 1.4% pop to 2,708, extending its rebound off March lows to 12%.
Oil was the biggest casualty of the de-escalation trade. WTI crude collapsed 6.7% to roughly $92.46 a barrel, handing back most of the war premium built up over recent weeks, while Brent slid 3.9% to near $95.48.
Tuesday’s Performance In Major U.S. Indices
| Index | Last | % Change |
|---|---|---|
| S&P 500 | 6,963.23 | +1.1% |
| Dow Jones | 48,564.98 | +0.7% |
| Nasdaq 100 | 25,775.75 | +1.5% |
| Russell 2000 | 2,707.96 | +1.4% |
According to the Benzinga Pro platform:
- The Vanguard S&P 500 ETF (NYSE:VOO) gained 1.1%.
- The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) rose 0.7%.
- The Invesco QQQ Trust (NASDAQ:QQQ) climbed 1.5%.
- The iShares Russell 2000 ETF (NYSE:IWM) rallied 1.4%.
Airlines Soar and Oil Stocks Sink As Hormuz Risk Unwinds
The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) led the S&P 500 sector leaderboard with a 2.3% gain, powered by travel and consumer-sensitive names.
The Communication Services Select Sector SPDR Fund (NYSE:XLC) rose 1.6% and the Technology Select Sector SPDR Fund (NYSE:XLK) added 0.9%.
At the other end, the Energy Select Sector SPDR Fund (NYSE:XLE) slumped 2.3% as the crude rout dragged producers and services lower, with consumer staples, materials and utilities also in the red.
The industry tape told the same story.
Airlines were the standout corporate story with the U.S. Global Jets ETF (NYSE:JETS) jumping 4.9%.
American Airlines Group Inc. (NASDAQ:AAL) surged 8.9% following reports that United Airlines Holdings Inc. (NASDAQ:UAL) CEO Scott Kirby pitched senior officials on a potential merger earlier this year.
Delta Air Lines Inc. (NYSE:DAL), Alaska Air Group Inc. (NYSE:ALK) and Southwest Airlines Co. (NYSE:LUV) climbed 7.2%, 7.6% and 5.7%, respectively, as the cheaper jet-fuel tailwind amplified the deal-chatter bid.
Meanwhile, the iShares PHLX SOX Semiconductor Sector Index Fund (NYSE:SOXX) rallied to record highs, up for its 10th straight session, notching the longest streak since 2017. In that window, chipmakers have soared over 27%, the strongest rally since 2002.
On the downside, the SPDR S&P Oil & Gas Exploration & Production ETF (NYSE:XOP) tumbled 2.8% and the VanEck Oil Services ETF (NYSE:OIH) slid 1.8%.
Bank earnings split the tape.
JPMorgan Chase & Co. (NYSE:JPM) edged 0.2% lower after trimming its net interest income guidance, while Wells Fargo Co. (NYSE:WFC) tumbled nearly 5% following a disappointing first-quarter print.
BlackRock Inc. (NYSE:BLK) rallied 4% and Citigroup Inc. (NYSE:C) rose 1.6% on upbeat results, while Johnson & Johnson (NYSE:JNJ) slipped 0.4% even after raising its 2026 revenue outlook.
Elsewhere, Robinhood Markets Inc. (NASDAQ:HOOD) led the Russell 1000 with a 9.6% gain and crypto-adjacent names rallied alongside, with Coinbase Global Inc. (NASDAQ:COIN) up 6.9% and Circle Internet Group Inc. (NYSE:CRCL) climbing 8.1%.
The day’s worst performer was CarMax Inc. (NYSE:KMX), which cratered 15%, followed by a 10.8% drop in AST SpaceMobile Inc. (NASDAQ:ASTS). Energy producers APA Corporation (NASDAQ:APA), Occidental Petroleum Corporation (NYSE:OXY) and ConocoPhillips (NYSE:COP) fell 5.8%, 4.6% and 4.2%, respectively, tracking crude’s slide.
Tuesday’s Russell 1000 Top Gainers
| Name | % change |
|---|---|
| Robinhood Markets, Inc. | +9.6% |
| American Airlines Group Inc. | +8.9% |
| Circle Internet Group, Inc. | +8.1% |
| Alaska Air Group, Inc. | +7.6% |
| Delta Air Lines, Inc. | +7.2% |
Tuesday’s Russell 1000 Top Losers
| Name | % change |
|---|---|
| CarMax, Inc. | -15% |
| AST SpaceMobile, Inc. | -10.8% |
| APA Corporation | -5.8% |
| Akamai Technologies, Inc. (NASDAQ:AKAM) | -5.4% |
| Wells Fargo & Company | -5.2% |
Photo: Shutterstock