Automated translation by Reuters using machine learning and generative AI. Please refer to the following disclaimer: https://bit.ly/rtrsauto
* Rising indices: Dow 0.60%, S&P 500 0.88%, Nasdaq 1.41%
* BlackRock advances after profit increase
* Wells Fargo declines after results, Citi reaches highest level since 2008
* United and American Airlines up after merger presentation
(Update late morning) by Niket Nishant and Avinash P
Major Wall Street indices rose Tuesday as reports of new efforts to ease conflict in the Middle East boosted sentiment, while traders also assessed a series of corporate earnings.
Delegations from the United States and Iran could resume talks in Pakistan to end the war this week, sources told Reuters. President Donald Trump also said Iran wanted to reach an agreement.
The market has been sensitive to developments in the region, with even tentative signs of an exit ramp enough to encourage investors hungry for positive news.
“The shift from conflict between the United States and Iran from missiles to words leaves markets hopeful for the beginning of the end of the war,” said Bob Savage, market chief macroeconomic strategist at BNY.
At 11:26 am ET, the Dow Jones Industrial Average .DJI rose 290.36 points, or 0.60%, to 38,508.61. The S&P 500 .SPX gained 60.15 points, or 0.88%, to 6,946.39, and the Nasdaq Composite .IXIC jumped 326.91 points, or 1.41%, to 23,510.64.
The S&P 500 .SPX was on track to recover all its losses since the start of the war, while the Nasdaq 100 .NDX was set to record a ten-day winning streak, the longest since 2021.
However, any sign of a resumption of hostilities could quickly derail the rally, especially as concerns about the economic impact of the war persist.
The International Monetary Fund lowered its global growth outlook on Tuesday.
Comments from several Federal Reserve policymakers will also be closely watched throughout the day to see how the central bank assesses the impact of the US-Iran war.
EARNINGS PROVIDE INSIGHTS
In addition to geopolitics, investors are looking at a series of quarterly results to position themselves.
“The earnings season will help investors shift from macroeconomics to microeconomics,” said Art Hogan, chief market strategist at B Riley Wealth.
BlackRock BLK.N rose 4.2% after the asset manager announced a profit increase in the first quarter, helped by strong inflows into its exchange-traded funds and a sharp rise in performance fees.
Citigroup C.N rose 1.5% and reached its highest level in nearly twenty years after exceeding first-quarter profit estimates, while Johnson & Johnson JNJ.N rose 1.4% after reporting its earnings.
JPMorgan JPM.N fell 0.6% after releasing its first-quarter results, while Wells Fargo WFC.N dropped 4.8% as interest income fell below market expectations.
The financial sector of the S&P .SPSY index rose 0.3%. Software sector stocks .SPLRCIS increased by 1.4%, recording their strongest two-day increase since last May.
Among other rising stocks, United Airlines UAL.O and American Airlines AAL.O rose 4% and 8.9% respectively.
United Airlines CEO Scott Kirby presented a potential merger with American Airlines to Mr. Trump at the end of February, according to two sources, hinting at a possible deal that could reshape the sector.
Globalstar GSAT.O shares surged 10.1% after Amazon.com AMZN.O agreed to acquire the satellite company.
Additionally, Tuesday’s data showed that US producer prices rose less than expected in March, with service costs remaining unchanged.
There were more gainers than decliners in a ratio of 2.61 to 1 on the NYSE and 2.4 to 1 on the Nasdaq.
The S&P 500 hit 18 new weekly highs and one new low, while the Nasdaq Composite recorded 109 new highs and 29 new lows.
