US stocks moved higher in early trading on Tuesday evening Beijing time, led by gains in the semiconductor sector, with the Nasdaq Composite up 0.7%. Investors assessed the implications of escalating US-Iran tensions while focusing on the latest corporate earnings reports.

The Dow Jones Industrial Average rose 237.23 points, or 0.46%, to 52,076.49. The Nasdaq Composite gained 185.891 points, or 0.73%, to reach 25,693.964. The S&P 500 index increased by 32.93 points, or 0.44%, to 7,476.21.

Industrial giant 3M reported second-quarter profits that exceeded expectations, driving its stock price up more than 5%. General Motors also posted profits ahead of forecasts, pushing its shares approximately 2% higher. The earnings season has started robustly. According to FactSet data, among the roughly 54 S&P 500 companies that have reported so far, 87% have exceeded profit expectations.

Major companies scheduled to report later this week include Google parent Alphabet, IBM, and Tesla.

As firms release their latest results this week, traders will be paying close attention to details regarding artificial intelligence spending. They will also listen carefully during earnings calls to confirm that executives have not grown more cautious about the outlook for the second half of the year.

The semiconductor sector also provided a lift to the broader market in early trading. The VanEck Semiconductor ETF (SMH) rose more than 3%. Marvell Technology, Micron Technology, and Astera Labs were all up about 6% in pre-market activity. Intel gained over 5%.

Tuesday's advance followed a down trading session where traders were weighing the impact of escalating US-Iran hostilities.

Since the US President announced the end of a US-Iran ceasefire, the US Central Command has conducted airstrikes against Iran for a tenth consecutive night, while Tehran's forces have attacked US military assets in the Middle East, and its Houthi allies declared a maritime blockade against Saudi Arabia.

Oil prices were volatile on Tuesday as Wall Street focused on a fresh diplomatic push for mediation efforts between the US and Iran. Reports indicated that mediators proposed a 10-day ceasefire between the two adversaries. West Texas Intermediate crude futures rose more than 1%, surpassing $84 per barrel, while the international benchmark Brent crude futures also gained over 1%, trading above $90 per barrel.

During Monday's session, oil prices climbed after a social media post from the US President stated Tehran would pay a price for the deaths of three US service members. The rise in energy prices contributed to a decline in the major stock indices that day, although semiconductor stocks recovered some of the ground lost in last week's sharp sell-off.