Wall Street closed higher on Monday (Tuesday AEST), with the Dow Jones Industrial Average reaching a record closing high as easing tensions between the United States and Iran, alongside a strong rebound in technology stocks, boosted investor sentiment.
The Dow Jones Industrial Average gained 306.6 points, or 0.6%, to finish at 52,182.7. The S&P 500 advanced 86.4 points, or 1.2%, to 7,440.4, while the Nasdaq Composite climbed 522.5 points, or 2.1%, to 25,820.1.
Market sentiment improved after hostilities between the United States and Iran eased over the weekend, although uncertainty remained over diplomatic negotiations.
Iranian and U.S. negotiating teams were expected to meet in Doha this week, but Iran said no meeting had been scheduled as missile exchanges over the weekend tested the interim ceasefire aimed at ending the four-month conflict.
The United States and Iran signed a memorandum of understanding on 17 June designed to end the conflict.
Under the agreement, both sides committed to ceasing hostilities and reopening the Strait of Hormuz.
Investors also turned their attention to the upcoming second-quarter earnings season, with most S&P 500 companies scheduled to begin reporting results after mid-July.
Among individual stocks, Comcast rose 4.5% after announcing plans to separate into two independently listed public companies through a tax-free spinoff of NBCUniversal and Sky.
SpaceX surged 7.2% after Nasdaq announced the recently listed company would be added to the Nasdaq 100 Index from 7 July.
Alphabet gained 4.8% on its first trading session as a component of the Dow Jones Industrial Average.
The technology sector broadly rebounded after recent weakness, with artificial intelligence-related companies, semiconductor stocks and several members of the Magnificent Seven recovering from selling pressure driven by concerns over elevated AI investment spending.
Investors are now looking ahead to the next monthly U.S. employment report, due on Thursday, for further indications on the strength of the economy and the potential direction of interest rates.
On the bond markets, the 10-year U.S. Treasury yield was unchanged at 4.376%, while the two-year Treasury yield edged up 0.3% to 4.107%.
