Closing Bell: Some Stocks Rally as U.S. and Iran Negotiate in New York

U.S. equities were mixed but extended Monday's gains as investors grew more optimistic about a potential diplomatic breakthrough between the United States and Iran.  

The S&P 500 (SPX) was flat, and the Dow Jones Industrial Average ($DJI) fell 0.36%. But the Nasdaq-100 (NDX) rose 0.82% and hit a new all-time high. The Russell 2000 (RUT) inched 0.51% higher.  

WTI crude oil fell below the $90 per barrel Tuesday, supporting broader risk appetite and lifting stocks throughout the day. The decline in oil prices helped improve sentiment across a range of sectors, while investors continued to favor growth-oriented areas of the market.  

The artificial intelligence trade remained a key driver, with memory and storage-related names leading gains. SanDisk (SNDK) surged 6.8% and Micron (MU) rose 5% as investors continued to position around rising AI infrastructure demand and data center spending trends.  

Four things to watch from Tuesday's market action: 

U.S. & Iran Meet at the UN 

U.S. envoys Steve Witkoff and Jared Kushner met with Iranian Foreign Minister Abbas Araghchi from Iran for three hours Tuesday, on the sidelines of the United National General Assembly in New York, according to reports. Iran's conditions for fully opening the Strait of Hormuz reportedly include lifting a naval blockade and releasing frozen Iranian assets; President Donald Trump said, "it's to their advantage to make a deal," according to reports. 

This helped ease concerns about potential supply disruptions in the energy market.  

Domestic Refiners Downgraded 

Jefferies downgraded domestic refiners Marathon Petroleum (MPC), which fell 3%, and Valero Energy (VLO), which declined 4%, Tuesday from Buy to Hold. There was talk about curbing diesel fuel exports. See The Big 3: CBRS, VLO, TSLA | Trading 360 

SanDisk Gets Bullish AI Call 

Rosenblatt initiated coverage of SanDisk with a Buy rating and a $2,400 price target, arguing that AI compute platforms are transforming NAND flash memory from a commodity storage product into a critical component of AI infrastructure. The firm said SanDisk's technology roadmap and its roughly 25-year NAND development partnership with Kioxia position the company to maintain a favorable cost and performance advantage in enterprise AI storage applications. See Slide in Crude Oil, Yields 'Extremely Attractive' for Stocks, Mag 7 Lead Momentum and MU & SNDK Show Memory Shortages, Energy Next Key Bottleneck for AI Trade  

Paramount-Skydance M&A Settlement Details 

Paramount Skydance (PSKY) shares rose 2% Tuesday as details emerged on the settlement resolving an antitrust challenge to the Paramount Skydance merger with Warner Bros. Discovery (WBD). As part of the agreement, pending court approval, involving a coalition of 12 state attorneys general, the companies committed to increasing film production over the next five years, including an additional $1.5 billion investment in domestic film production and a $47.5 million fund for workers impacted by the merger. The settlement also includes commitments designed to maintain competitive cable pricing and support independent film production. Warner Bros. Discovery shares rose fractionally. See Tuesday's Final Takeaways: SB Energy Delays IPO, PSKY & WBD Merger Clears Big Hurdle 

For this week’s economic and earnings calendar, see Week Ahead: Heavy Economic Data as U.S.-China Summit Looms