U.S. Markets Close Higher as Investors Assess Potential Truce Developments

U.S. equity markets closed higher on Tuesday as investors reacted to easing geopolitical tensions and a retreat in Treasury yields. The S&P 500 and Nasdaq Composite both posted gains, led by a strong performance in the technology sector and positive outlooks regarding artificial intelligence demand. Meanwhile, global oil prices experienced a sharp decline following reports of potential ceasefire discussions in the Middle East. This shift in sentiment helped offset concerns regarding interest rate trajectories, as market participants weighed recent economic data and comments from Federal Reserve officials.

• The S&P 500 and Nasdaq Composite ended the day in positive territory, recovering from previous sessions’ losses.
• Crude oil prices fell by more than 4% amid reports that Hezbollah may be open to ceasefire talks with Israel.
• Technology stocks led the market rally, with Nvidia shares rising over 4% and other semiconductor firms seeing significant gains.
• Foxconn raised its full-year revenue guidance, citing exceptionally strong demand for servers used in artificial intelligence.
• The yield on the 10-year Treasury note fell back below 4% after briefly touching its highest level since July.
• Economic data showed the U.S. trade deficit narrowed in August to $70.4 billion, the smallest gap since March.

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