Crude Oil Price Slide Lifts Stocks, Nvidia Earnings Loom

US stocks closed higher on Tuesday as a significant drop in crude oil prices eased inflation concerns. The S&P 500 Index rose by 0.32%, while the Dow Jones Industrial Average gained 0.30%. The Nasdaq 100 Index advanced 0.64%.

The sharp decline in WTI crude oil was more than 3%, causing a drop of around 6 basis points in the 10-year Treasury note yield to 4.64%. This move is attributed to a report by The New York Times stating that the US State Department is preparing to return diplomats to embassies in the Middle East, which suggests that the Trump administration does not anticipate a return to all-out hostilities with Iran.

Chipmakers and AI-infrastructure stocks saw gains, with short covering emerging ahead of Nvidia's quarterly earnings results. Marvell Technology and Advanced Micro Devices each closed up more than 4%, while Seagate Technology Holdings gained over 3%.