S&P 500 Breaks Above 7,700 as Iran Deal Hopes Fuel Rally

The S&P 500 reached a new intraday record on Tuesday after investors regained confidence in risk assets. The benchmark index climbed above 7,700 for the first time as major U.S. indexes rose due to stronger corporate earnings and improved optimism over a possible US-Iran agreement.

Oil prices fell sharply following comments from US Treasury Secretary Scott Bessent that an agreement with Iran could be announced soon, which may reopen the Strait of Hormuz. Lower energy prices supported gains across major U.S. indexes, including technology shares that continued recovering from weakness seen earlier this summer.

Caterpillar raised its annual revenue forecast after reporting stronger demand linked to AI infrastructure projects, while Palantir exceeded market expectations with 93% year-over-year revenue growth. Strong quarterly results from Amazon and Microsoft had already improved market sentiment in recent sessions.