U.S. markets ended sharply higher on Tuesday driven by strong corporate earnings and reduced oil prices amid potential progress on a US-Iran deal regarding the Strait of Hormuz. On the economic front, a report released by the Commerce Department showed factory orders in the United States eased 0.3% from the previous month to $656.5 billion in June of 2026, extending the revised 1.1% decline in the previous month, missing expectations of a 0.2% increase. It was the first month of back-to-back declines in nearly one year, indicating some impact from soaring energy costs due to the war in the Middle East and lingering impact from tariffs. Besides, another report released by Commerce Department showed the US trade deficit narrowed to $73.3 billion in June 2026 from $77.6 billion in May, broadly in line with market expectations, as imports declined more sharply than exports. Imports declined 1.8% to $388.0 billion, driven by lower purchases of capital goods and consumer goods, particularly computers and pharmaceuticals, while services imports edged higher. Exports fell 0.9% to $314.7 billion, reflecting weaker shipments of industrial supplies, including crude and fuel oil, and capital goods, although services exports increased on stronger financial services and travel.
Nasdaq surged 671.09 points or 2.59 percent to 26,584.99, S&P 500 gained 136.02 points or 1.79 percent to 7,736.52 and Dow Jones Industrial Average jumped 907.47 points or 1.71 percent to 54,085.88.
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