US stocks advance as oil pulls back from war-driven highs

U.S. stocks rose on Tuesday, following the release of strong earnings reports from companies like Equifax, Hasbro, and Halliburton, while oil prices retreated after testing their highest levels in nearly a year due to the ongoing Iran war. The S&P 500 gained 0.6%, while the Dow Jones Industrial Average climbed 1.3%. The Nasdaq composite also saw a modest increase of 0.5%.

Analysts expect corporate profits to drive long-term stock prices, and several companies reported higher-than-expected earnings during the latest quarter. Equifax saw a 10.7% increase following a larger profit than anticipated, despite high mortgage rates impacting some areas of its business. Hasbro experienced a 5.9% rise after its "Magic: The Gathering" game earned over $600 million in a quarter, surpassing analyst expectations.

Meanwhile, Halliburton reported better-than-expected profit and revenue figures, citing recovering demand for its oilfield services.

Meanwhile, the price of Brent crude oil dropped 2.5% to $106.78, easing concerns over persistently high inflation. The decline benefited various sectors, including airlines (American Airlines up 7.1% and United Airlines up 5.3%), and Braze, a customer engagement platform, surged 50.8% following its acquisition by Salesforce for $47.50 per share. GM, on the other hand, declined 4.9% despite reporting higher-than-expected profits and announcing a potential $20 billion stock buyback program.

Looking ahead, companies are under pressure to maintain robust profit growth, both in the near term and for future years. AI stocks, which have been a focal point of market uncertainty due to the technology's rapid growth and the impact of high interest rates on borrowing, continued to fluctuate. CoreWeave, an AI-focused company, experienced significant volatility, climbing from a more than 6% loss to a 4.1% gain.