U.S. Stocks edged higher on Tuesday as easing oil prices and optimism around U.S.-Iran negotiations fueled a risk-on rally across Wall Street. The Nasdaq Composite led the advance, jumping roughly 1.7%, while the S&P 500 climbed about 1% as investors piled back into growth and tech names.
The Dow Jones Industrial Average rose a more modest 0.6%, lagging its peers as strength in megacap tech overshadowed gains in more traditional sectors. The rally builds on recent momentum that has seen major indexes recover most of their losses tied to the initial shock of the Middle East conflict.
Market Movers:
- Bloom Energy (BE) +15% – Shares surged after Oracle expanded its partnership to procure up to 2.8 gigawatts of fuel cell capacity for AI data centers. The deal highlights booming demand for fast, reliable power solutions as tech giants scale infrastructure for artificial intelligence.
- Globalstar (GSAT) +10% – The stock jumped following news that Amazon will acquire the satellite operator in a deal valued at roughly $11.5 billion. The move strengthens Amazon’s position in direct-to-device connectivity while intensifying competition with satellite rivals.
- Amazon (AMZN) +3% – Shares gained as investors reacted positively to the Globalstar acquisition and expanded satellite ambitions. The company’s push into connectivity services adds another growth lever alongside its cloud and AI businesses.
- Credo Technology (CRDO) +14% – Shares rallied after announcing its acquisition of DustPhotonics, boosting its capabilities in high-speed optical connectivity. The deal positions the company to capitalize on surging AI-driven demand for data center bandwidth.
- BlackRock (BLK) +4% – The asset manager rose after posting stronger-than-expected quarterly results, driven by solid fee growth and margin expansion. Record ETF inflows helped offset slightly weaker long-term investment flows.
- Allogene Therapeutics (ALLO) -13% – Shares dropped after the company announced a $175 million public stock offering. The capital raise raised concerns about dilution despite plans to fund ongoing clinical development.
- CarMax (KMX) -12% – The stock fell despite an earnings beat as weak demand trends and declining used car sales weighed on sentiment. Pressure on margins and pricing continues to cloud the company’s near-term outlook.
- Wells Fargo (WFC) -5% – Shares declined after mixed earnings results highlighted ongoing pressure on net interest income and margins. Rising credit loss provisions also signaled a more cautious economic backdrop.
Oil Falls as Iran Negotiation Hopes Build
A key driver behind Tuesday’s rally was a steep pullback in oil prices, with crude falling below the $100 per barrel mark. West Texas Intermediate slid roughly 6% to the low $90s, while Brent crude also moved lower. The decline comes as investors grow increasingly optimistic that diplomatic efforts between the U.S. and Iran could extend the current ceasefire. Any sustained easing in tensions, particularly around the Strait of Hormuz, would help stabilize global energy supply and reduce inflationary pressure.
Cooler Wholesale Inflation Eases Pressure
Fresh data on producer prices offered another tailwind for markets. Wholesale inflation rose just 0.5% in March, coming in well below expectations and signaling that pipeline price pressures may not be accelerating as quickly as feared. The softer reading helped offset concerns sparked by recent spikes in consumer inflation, reinforcing hopes that price pressures could moderate if energy markets stabilize. For investors, the data supports the case that the Federal Reserve may not need to tighten policy further.
Tech Leadership Returns as Volatility Fades
Market leadership continues to rotate back toward large-cap tech, with the Nasdaq extending its winning streak and megacap stocks regaining dominance. Strength in AI-linked names and semiconductor companies is once again driving index-level gains. At the same time, market volatility has dropped sharply. The VIX has fallen back below 20 after briefly spiking above 30 during the early days of the conflict, signaling that investor fear is quickly subsiding and dip-buying behavior remains intact.
Looking Ahead
Investors are now focused on whether diplomatic progress can translate into a more durable agreement between the U.S. and Iran. A sustained reopening of key energy routes would likely keep downward pressure on oil prices and support further gains in equities. At the same time, upcoming earnings from major banks and corporations will provide critical insight into how businesses are navigating a complex mix of geopolitical risk, inflation, and shifting demand. With markets rebounding quickly, the next phase will depend on whether improving sentiment is backed by equally strong fundamentals.
