U.S. stocks rallied on Tuesday as oil prices declined sharply, easing inflation fears. The Dow Jones Industrial Average rose 160.24 points to 53,577.40, while the S&P 500 gained 24.42 points to 7,677.28 and the Nasdaq Composite added 171.11 points to 26,151.30. Oil futures dropped 3.1% to close at $82.36 a barrel in New York after traders weighed modest U.S. sanctions on Iran.

The decline in crude prices pushed Treasury yields lower, with the 30-year bond yield falling to 5.174%. The U.S. dollar weakened against rivals, buoying commodities. Gold futures slipped 0.06% to $4,638.10, while copper futures hit a record high of $6.7095 per pound.

Mixed economic data showed new single-family home sales slid 10.5% to 607,000 in July, and consumer confidence dipped to 89.4. Dick's Sporting Goods plunged 31% to $124.31 after cutting its operating income outlook, citing tough conditions in athletic footwear. Nike and Adidas shares fell in sympathy.

United Airlines announced new international destinations, targeting "Instagrammable" spots like Ljubljana, Slovenia. Financial stocks rose on deal anticipation. In trade news, Canada vowed tariffs on U.S. goods, while Hyundai Motor reached a wage agreement ending labor walkouts.