Peace Deal Hopes Lift Dow to Record High
US stocks closed higher on Tuesday as investors seemed hopeful that a peace deal could ease tensions in the Middle East.
The Dow Jones Industrial Average rose to a record high, buoyed by gains in healthcare and Disney shares. Amgen's 4.6% gain added over 100 points to the average, while Disney's 3.6% rise contributed to the boost.
However, the Nasdaq Composite declined for the first time in five sessions, dragged lower by SpaceX and AMD shares. Despite a strong quarterly earnings report from Advanced Micro Devices, investors remained cautious about the company's massive AI spending.
The proposed deal between Iran and Oman could give Iran control over ships entering the Gulf through the Strait of Hormuz, according to Reuters. This potential concession has eased concerns about price pressures and inflation, lowering expectations for a rate hike from the Federal Reserve.