NEW YORK - US and European stocks surged to record highs Tuesday as investors focused on strong first-quarter corporate earnings, largely ignoring uncertainty over the fragile US-Iran ceasefire.
The S&P 500 and Nasdaq both closed at fresh records, with the Nasdaq leading on a one percent surge driven by double-digit gains in chipmakers Intel and Micron.
Oil prices fell four percent, with Brent crude dropping below $110 a barrel, as markets took comfort from US Defense Secretary Pete Hegseth's statement that the US is "not looking for a fight" in the Strait of Hormuz, even as Iran launched missile and drone attacks on the UAE for a second day.
In Europe, Paris and Frankfurt gained over one percent. London's FTSE 100 fell 1.4 percent, dragged down by HSBC after a $400 million fraud charge hit quarterly profits.
Analysts say the earnings season continues to fuel positive momentum, but warn that prolonged Middle East instability could eventually sour investor sentiment.