US stocks advanced on Tuesday, as Iran's supreme leader restated his conditions for ending the war and Anthropic's progress toward an IPO eased concerns among technology investors.
The Nasdaq 100 climbed 1.3%, its best single-day performance in more than a month. The S&P 500 gained 0.6%. Brent crude fell 1.6% to $114 a barrel.
According to a released statement, Khamenei stressed during a meeting with Mohsen Rezaee, head of Iran's Supreme National Security Council, the need to implement "the conditions put forward by Iranian officials, with the goal of ending the war and the 'no war, no peace' situation."
Investors were also awaiting the results of Israel's first general election since the October 2023 Hamas attack, which could affect the outlook for the Iran war.
US consumer confidence unexpectedly rose in October, the first increase in four months, as views on the job market and business environment improved.
Investor attention shifted to macroeconomics, with traders set to receive more information for assessment after the Federal Reserve's rate decision on Wednesday and earnings releases from several technology companies.
Michael O'Rourke, chief market strategist at JonesTrading Institutional Services LLC, wrote in a report: "After three consecutive weeks of pressure on the AI sector, a series of AI-related news items triggered a relief rally."
United Parcel Service rose 5.8%, its biggest single-day gain in a year, after the company raised its full-year revenue guidance above Wall Street expectations.
Boeing plunged 11%, its biggest drop since June 2020, after the company lowered its delivery targets.
Tesla rose 4%, outperforming the other stocks in the Magnificent Seven for a second consecutive trading day.
At the close, the S&P 500 rose 0.6% to 7,722.6; the Dow Jones Industrial Average was essentially flat at 52,377.57; the Nasdaq Composite rose 1.2% to 26,477.81; the Nasdaq 100 rose 1.3% to 29,651.44; and the Russell 2000 rose 1.2% to 2,818.87.
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