US equity markets bounced back sharply from the geopolitical-driven selloff of Monday’s session, with the S&P 500 climbing 0.81% to close at a record 7,259.22 on Tuesday as falling oil prices and a series of solid earnings reports restored investor confidence. The Nasdaq Composite gained 1.03% to reach a new closing record of 25,326.13, while the Dow Jones Industrial Average added 356 points to finish at 49,298.25.
The primary drivers of the session were twofold. Crude oil prices retreated sharply, with West Texas Intermediate futures falling 3.9% to settle at $102.27 per barrel as markets reassessed the immediate risk of a widening conflict in the Middle East following Monday’s spike. Brent crude fell 3.99% to close at $109.87. Lower energy prices acted as a release valve for inflation concerns that had weighed heavily on sentiment throughout the early part of the week.
On the economic data front, the Institute for Supply Management’s services index fell modestly to 53.6, a decline of 0.4 points and slightly below the 54.0 estimate, though any reading above 50 continues to signal expansion in the services sector. Job openings data from the Bureau of Labor Statistics showed total openings edging lower to 6.87 million in March, broadly in line with the 6.8 million consensus estimate, while the hiring rate saw a sharp increase that suggested the labour market remains structurally healthy.
Individual stocks saw significant divergence driven by earnings. Pinterest jumped after its record quarterly revenue report, while Palantir fell roughly 3% despite beating earnings estimates, as investors expressed concern about the stock’s elevated valuation relative to near-term growth. Duolingo tumbled approximately 13% after monthly active users came in below first-quarter estimates. The session underlined how sharply stock-specific narratives can separate winners from losers even in a broadly positive market environment, a dynamic that is likely to intensify as earnings season continues through May.
