Global stocks rose Tuesday, buoyed by strong corporate earnings and a slight pullback in oil prices, even as geopolitical risks in the Middle East persist.
On Wall Street, the Dow Jones Industrial Average added 0.2%, the S&P 500 gained 0.6%, and the Nasdaq Composite rose 0.9%. In Europe, the STOXX 600 climbed 0.5%, lifted by Anheuser-Busch's better-than-expected first-quarter results and Unicredit's record quarterly profits.
Oil prices edged lower, with Brent crude futures falling 2.75% to $111.27 a barrel, as markets took a cautious breather after Monday's surge. The retreat came despite renewed hostilities between the U.S. and Iran in the Gulf, with dueling maritime blockades near the Strait of Hormuz. Maersk confirmed a U.S.-flagged vessel exited the Gulf under military escort.
ING's head of commodities strategy Warren Patterson noted markets may find temporary relief, but skepticism remains high given recent escalations and repeated extensions of conflict timelines.
S&P Global Market Intelligence data shows 83% of reporting S&P 500 companies have beaten earnings per share estimates, with first-quarter earnings growth now projected to top 18%, up from 12.8% a month ago. LPL Financial's chief equity strategist Jeff Buchbinder highlighted AI-driven spending as a key driver for continued earnings growth.
The yen remained in focus after Monday's sudden surge sparked intervention speculation. The dollar was slightly stronger against the yen, trading at 157.73. Japanese Finance Minister Satsuki Katayama warned against speculative trading, keeping markets alert for further intervention.
Gold rose 1.2% to $4,574 an ounce, while Bitcoin continued its rebound, trading at $81,318.