Wall Street Rises as Iran Deal Hopes Boost Markets/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks climbed Tuesday as Wall Street reacted to optimism surrounding possible negotiations to end the Iran conflict. Technology shares and travel companies helped push major indexes near record highs despite continued military tensions in the Middle East. Oil prices and Treasury yields eased, offering investors relief after weeks of market volatility.

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Wall Street Market Rally Quick Looks

• S&P 500 rose 0.5% Tuesday morning.
• Nasdaq climbed 0.8% near record highs.
• Investors reacted to optimism over Iran negotiations.
• Oil prices remained volatile after recent swings.
• Treasury yields eased following recent bond market pressure.
• Airline and cruise stocks rallied on lower fuel costs.
• Micron Technology surged after a bullish analyst upgrade.
• AutoZone shares fell after weaker revenue results.
• AI-related stocks continued driving market momentum.
• Markets remain sensitive to Strait of Hormuz disruptions.

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Deep Look

Wall Street Climbs on Iran Negotiation Optimism

The U.S. stock market moved higher Tuesday as investors reacted positively to signs of possible diplomatic progress involving Iran and the United States.

The rally followed comments from Donald Trump, who said negotiations aimed at ending the conflict were “proceeding nicely.”

The S&P 500 gained 0.5% in early trading, while the Dow Jones Industrial Average rose modestly and the Nasdaq Composite advanced 0.8%.

All three indexes remained near all-time highs.

Markets Ignore Continued Military Tensions

The gains came despite ongoing instability in the Middle East.

The U.S. military confirmed Monday it carried out “self-defense” strikes in southern Iran targeting missile launch sites and boats allegedly placing naval mines.

Markets have repeatedly rallied on hopes for a ceasefire only to reverse course as fighting resumes.

Investors continue closely watching developments involving the Strait of Hormuz, a key global shipping route for oil and natural gas.

Oil Prices Swing Again

Oil prices remained highly volatile Tuesday.

Brent crude rose 3% to $96.25 per barrel after plunging more than 7% the previous session.

Meanwhile, U.S. crude oil dropped 3.8% to $92.99 after trading resumed following the Memorial Day holiday.

The conflict has heavily disrupted energy markets since the U.S. and Israel launched strikes against Iran earlier this year.

Iran’s effective control over the Strait of Hormuz has severely limited tanker traffic and contributed to rising inflation globally.

Lower Yields Help Stocks

Falling oil prices also helped calm the bond market.

The yield on the 10-year Treasury note fell to 4.48% from 4.56% late Friday.

Lower Treasury yields can help support stocks because they reduce borrowing costs for businesses and ease pressure on investments.

Recent surges in bond yields had raised concerns about:

• Slower economic growth
• Higher mortgage rates
• Reduced corporate borrowing
• Pressure on technology investments

Travel Stocks Benefit From Fuel Relief

Travel-related companies climbed as investors anticipated lower fuel costs if oil prices continue stabilizing.

Among the biggest gainers:

• United Airlines rose 4.5%
• Carnival Corporation climbed 3.7%

Fuel costs remain one of the airline and cruise industries’ biggest operational expenses.

AI Stocks Continue Driving Rally

Technology companies tied to artificial intelligence continued powering the broader market higher.

Micron Technology jumped 11.2% after UBS analysts sharply increased their 12-month price target for the company’s stock.

AI-related demand for advanced memory chips and data center infrastructure has helped fuel strong earnings growth throughout the technology sector.

AutoZone Drops After Revenue Miss

Not every stock participated in the rally.

AutoZone fell 8.2% after reporting quarterly revenue slightly below analyst expectations.

CEO Phil Daniele said the company’s stores in Brazil and Mexico underperformed internal forecasts.

Overseas Markets Mixed

Global stock markets produced mixed results Tuesday.

• South Korea’s Kospi surged 2.5%
• London’s FTSE 100 gained 0.7%
• Japan’s Nikkei 225 slipped 0.2%

In London, energy giant BP dropped 4.7% after removing its chairman over governance concerns.

Investors Remain Focused on Iran

Despite the market rally, analysts caution that investors remain highly sensitive to developments involving Iran and the Strait of Hormuz.

Any escalation in military activity or breakdown in negotiations could quickly reverse recent gains in:

• Stocks
• Bonds
• Energy markets
• Global trade sectors

For now, however, hopes for diplomacy continue supporting investor sentiment.

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