U.S. Stocks Rise as Oil Prices Ease and Corporate Earnings Shine

U.S. stocks surged on Tuesday, nearing all-time highs as oil prices retreated from recent peaks. The S&P 500 climbed 0.8%, on track 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. Brent crude oil, the international benchmark, fell 2% to $98.30 per barrel, easing some inflationary pressures and reducing tension in the bond market. The yield on the 10-year Treasury dipped to 5.25% from 5.31%, providing relief amid high borrowing costs and economic slowdown concerns.

Constellation Energy led the gains with a 13% jump after announcing a long-term deal to supply electricity to Google, highlighting the growing demand for power in AI-driven data centers. Option Care Health soared 32.7% following news of a $5.8 billion acquisition by CD&R and McKesson. Despite inflationary challenges, companies like Lamb Weston reported stronger-than-expected profits, boosting investor confidence ahead of the upcoming earnings season.

Analysts predict a third straight quarter of over 25% profit growth for S&P 500 companies, with key reports from Delta Air Lines and major banks expected soon. Internationally, European markets saw modest gains amid bond market volatility, while Asian indexes were mixed, with Japan and Hong Kong rising but South Korea falling.