US stocks near record highs as oil prices ease and earnings shine

U.S. stocks climbed Tuesday, nearing record highs as oil prices retreated from recent peaks. The S&P 500 rose 0.8%, approaching its August high, while the Dow Jones Industrial Average gained 0.5% (265 points) and the Nasdaq composite added 0.8%, extending its all-time high from the previous day.

Brent crude oil, the international benchmark, dropped 2% to $98.30 per barrel, easing inflationary pressures. This decline also helped calm bond market tensions, with the 10-year Treasury yield falling to 5.25% from 5.31%. High yields have slowed economic activity by raising borrowing costs and reducing investor appetite for stocks.

Notable movers included Constellation Energy, which surged 13% after securing a long-term deal to supply Google with electricity. The AI-driven demand for data centers is boosting demand for energy and construction materials. Option Care Health soared 32.7% following a $5.8 billion acquisition by CD&R and McKesson, with the latter gaining 0.2%. Meanwhile, Lamb Weston rose 10.8% after reporting stronger-than-expected quarterly profits, despite inflationary cost pressures.

Corporate earnings remain a key focus, with analysts forecasting a third straight quarter of over 25% growth for S&P 500 companies. Upcoming reports from Delta Air Lines and major banks will further shape market sentiment. Internationally, European and Asian markets showed mixed movements amid bond market volatility and geopolitical concerns.