Stocks rose while oil prices fell on Tuesday morning, as investors bet that a delicate ceasefire between Israel and Iran would hold.

The Dow Jones Industrial Average climbed 291 points, or 0.7%. The S&P 500 gained 0.7%, and the Nasdaq Composite advanced 1%. Nano Labs soared 180%; Tesla gained 1%; Circle dropped 5%.

Oil prices were sharply lower for a second-straight day. U.S. crude oil slipped more than 4%, alongside international benchmark Brent. A day earlier, U.S. crude oil fell more than 7%, after reaching its highest level since January overnight.

Airline stocks were higher as oil pulled back, with shares of United Airlines, Frontier and Delta all climbing roughly 3%. Technology stocks Tesla and Broadcom advanced 2% and 3%, as investor appetite for risk grew.

These moves come as President Donald Trump tried to salvage a fragile ceasefire between Israel and Iran that took effect early Tuesday morning. Both sides have accused the other of violating the agreement. Israeli forces said a radar system close to Iran’s capital city Tehran was attacked. CNBC has not independently verified the report from Israeli army radio station GLZ.

Trump said on Truth Social that “ISRAEL is not going to attack Iran,” and added that the ceasefire is still in effect. The president earlier expressed frustration toward both Israel and Iran for breaking the agreement by saying he was “unhappy” with both sides.

“The market response to the escalation and subsequent ceasefire hopes aligns with our view that geopolitical shocks have tended to have a temporary impact on global financial markets, and that investors are likely to refocus on fundamentals,” Solita Marcelli, UBS Global Wealth Management chief investment officer Americas, wrote Tuesday. “We continue to believe solid fundamentals will help lift equities over the next 12 months.”

Tuesday’s gains in stock futures put the Street on track to build on Monday’s strong advances. The major averages jumped after Qatar’s Defense Ministry said that its air defense had intercepted Iran’s retaliatory strike on a U.S. military base.

Investors also parsed fresh commentary from Federal Reserve Chairman Jerome Powell before the House Financial Services Committee. Powell signaled that the central bank is in no rush to cut interest rates and will wait to see how Trump’s tariffs impact the economy.

Powell’s appearance on Capitol Hill comes at a pivotal time: He is facing an aggressive push from the White House to cut rates — and in recent days two Fed officials have said they could see a case for dialing back policy as early as July.