Small Caps Lead Market Higher Amid Falling Oil Prices

The US equity indices opened higher on Tuesday, but in contrast to Monday's tech-led rally, small caps led for most of the day. The Russell 2000 finished up 0.5%, narrowly beating the Nasdaq Composite, which was boosted by a fifth consecutive day of falling oil prices.

President Trump said US officials had a 'very good' three-hour meeting with Iranian envoys on the sidelines of the UN General Assembly, with another meeting planned. He added that he expects a deal 'right after the election', while also floating the possibility of moving to 'annihilate' Iran.

The AI-trade continued to boost the market, with the Philadelphia Semiconductor Index climbing for a sixth straight day. This carried the Nasdaq to a record close at 27,244.28 and the Nasdaq 100 notched its first record high since June.