US stocks extended their rally on Tuesday, reaching new highs, while oil prices and the 10-year Treasury yield continued to decline. This movement came as Iran reportedly weighs allowing European nations to clear mines in the Strait of Hormuz.

Earlier in the day, US Treasury Secretary Scott Bessent stated that an agreement to open the waterway could be reached within the next two days. He also expressed confidence that core inflation is slowing. The S&P 500 surged as much as 1.5%, surpassing the high set on June 2. The Nasdaq 100 also jumped 2.8%.

West Texas Intermediate crude oil futures fell 5.9% to around $75 per barrel. Strong earnings from technology company Palantir Technologies Inc. also boosted market sentiment. Several companies, including SpaceX, are set to release earnings reports, with the market's focus remaining on profitability and the artificial intelligence trade. Palantir Technologies Inc. shares surged 26% after the company raised its financial forecast.