US Stocks Climb Toward Records as Oil Prices Retreat

U.S. stocks rose on Tuesday, pushing major indexes toward new highs as oil prices retreated from recent peaks. The S&P 500 climbed 0.5%, eyeing its first record close since August, while the Dow Jones Industrial Average gained 0.4% and the Nasdaq composite added 0.6%, building on its all-time high from the previous day.

The market rally was supported by a 2.3% drop in Brent crude oil prices to $97.97 per barrel, easing inflationary pressures. The decline also helped stabilize bond markets, with the yield on the 10-year Treasury falling to 5.28%. High yields had been slowing economic activity by increasing borrowing costs and reducing investor appetite for stocks.

Among individual stocks, Constellation Energy Group surged 11.5% after securing a long-term deal to supply Google with electricity equivalent to a new nuclear reactor's output. The agreement highlights growing demand for power and construction materials driven by AI-driven data centers. Option Care Health soared 32.9% after announcing its acquisition by CD&R and McKesson for $5.8 billion.

Strong corporate earnings continue to underpin the market's resilience. Lamb Weston, a frozen potato products company, reported better-than-expected quarterly profits and raised its annual forecast, sending its shares up 7.3%. Analysts predict a third consecutive quarter of over 25% profit growth for S&P 500 companies, with earnings reports for the July-September period upcoming.

Internationally, European markets inched higher despite bond market volatility and budget concerns. In Asia, Japan's Nikkei 225 advanced 1.1% and Hong Kong's Hang Seng climbed 1%, while South Korea's Kospi fell 0.9%. France saw protests over education funding as demonstrators marched in support of students.