Stocks rise as oil prices ease ahead of key earnings season

U.S. stocks surged on Tuesday, nearing all-time highs as oil prices retreated from recent peaks. The S&P 500 climbed 0.8%, poised to surpass its August record, while the Dow Jones Industrial Average rose 0.5% and the Nasdaq added 0.8% to its own recent high. The drop in Brent crude oil prices, which fell 2% to $98.30 per barrel, eased inflation concerns and reduced pressure on global markets.

Constellation Energy led the gains with a 13% jump after announcing a long-term deal to supply Google with electricity equivalent to a new nuclear reactor. Meanwhile, Option Care Health soared 32.7% following a $5.8 billion acquisition by CD&R and McKesson. Lamb Weston, a frozen potato products company, also saw its stock rise 10.8% after reporting stronger-than-expected quarterly profits, despite inflation-related cost pressures.

Investors are closely watching upcoming earnings reports, with Delta Air Lines set to release its results on Friday and major banks following the next week. Analysts expect S&P 500 companies to report a third straight quarter of profit growth above 25%. Abroad, European markets saw modest gains, while Asian markets were mixed, with Japan and Hong Kong rising and South Korea falling.