U.S. stocks have surged close to their historic highs as oil prices continue to decline, spurred by optimism that the ongoing conflict between Israel and Iran will not significantly disrupt global oil supply. The S&P 500 saw a notable increase of 1.1% on Tuesday, drawing within 0.8% of its peak. Meanwhile, the Dow Jones Industrial Average experienced a 1.2% rise, and the Nasdaq composite rose by 1.4%.
Oil prices took a tumble of approximately 6%, moving below the levels they held before the onset of the tensions between Israel and Iran. This drop in oil prices could potentially afford the Federal Reserve more flexibility in cutting interest rates to foster economic growth. The Federal Reserve Chairman highlighted that they are monitoring conditions carefully to determine the most opportune moment to make such a move.
On Tuesday, the S&P 500 added 67.01 points, equal to a 1.1% rise, closing at 6,092.18. The Dow Jones Industrial Average saw a gain of 507.24 points, marking a 1.2% increase to conclude at 43,089.02. The Nasdaq composite climbed 281.56 points, or 1.4%, reaching 19,912.53. Additionally, the Russell 2000 index, which tracks smaller companies, moved up by 28.53 points, or 1.3%, finishing at 2,161.21.
Taking a broader look at the week as a whole, the S&P 500 advanced by 124.34 points, equating to a 2.1% increase. The Dow picked up 882.20 points, also reflecting a 2.1% rise. The Nasdaq improved by 465.12 points, pushing it up by 2.4%. Not to be outdone, the Russell 2000 climbed by 51.95 points, expanding by 2.5%.
Examining the year-to-date figures, the S&P 500 is up by 210.55 points, offering a 3.6% ascent. The Dow shows an increase of 544.80 points, or 1.3%. The Nasdaq has bolstered its position by 601.74 points, marking a 3.1% climb. However, the Russell 2000 has seen a decline of 68.95 points, translating to a 3.1% drop.