The S&P 500 closed at a record high Tuesday, its first in two months, fueled by strong corporate earnings, a tech rebound, and hopes for progress on reopening the Strait of Hormuz. The index surged 1.79% to 7,737 points.

The Dow Jones Industrial Average soared over 900 points, or 1.71%, surpassing 54,000 points for the first time ever. This marks back-to-back all-time highs for the blue-chip index. The tech-heavy Nasdaq Composite also saw a significant gain of 2.59%, though it remains about 2% shy of its early June record.

Investors are digesting robust earnings, reassessing artificial intelligence bets, and monitoring Middle East developments. Comments from Treasury Secretary Scott Bessent regarding the Strait of Hormuz eased oil price concerns, with Brent crude falling approximately 5.3%. Strong earnings reports, including from Caterpillar, and a rebound in tech stocks, particularly those related to AI, have lifted major indexes. Despite historical seasonal weakness in the coming months, the market shows resilience, with the S&P 500 up 13% and the Nasdaq up over 14% year-to-date.