U.S. stocks are trading higher Tuesday as crude oil’s sharp sell-off triggered a broad risk-on rotation, offering relief after one of the most volatile weeks for equity markets since the Iran war began.

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The war in Iran and the closure of the Strait of Hormuz had pushed oil near $120 per barrel on Monday and rattled global financial markets, but President Donald Trump‘s remarks on Monday sharply reversed the energy trade.

Trump stated on Monday that the Iran conflict may be nearing its end, though Iranian authorities signaled continued readiness to fight following additional strikes near the Persian Gulf.

"It's going to be ended soon."

Trump also said he is considering taking control of the Strait of Hormuz, indicating that the U.S. Navy will escort tankers through the Strait if needed.

"The Strait of Hormuz is going to remain safe."

Crude oil tumbled 10% to $85 a barrel during midday trading in New York, marking 10% drop from Monday’s close.

The S&P 500 rose 0.3% to 6,810, the Dow Jones Industrial Average added 0.4% to 47,930, and the Nasdaq 100 gained 0.5% to 25,090. Meanwhile, the Russell 2000 outperformed with a 0.7% advance to 2,570.

The Cboe Volatility Index (VIX) — the market’s fear gauge — dropped 9.3% to 23 levels, signaling a meaningful easing of near-term fear after last week’s spike.

Technology led all 11 S&P sectors, with the Technology Select Sector SPDR Fund (NYSE:XLK) rising 0.6%. Materials and real estate followed, each gaining 0.4%, while consumer staples and utilities added 0.3% and 0.2%, respectively.

The 10-year Treasury yield stood at 4.118% and the 30-year at 4.75%.

Tuesday’s Performance In Major U.S. Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF (NYSE:VOO) rose 0.32%.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.45%.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) rallied 0.50%.
• The iShares Russell 2000 ETF (NYSE:IWM) traded 0.83% higher.

Tuesday’s Earnings Movers

• Kohl’s Corporation (NYSE:KSS) reported fourth-quarter fiscal 2025 adjusted EPS of $1.07, topping the 85 cent consensus estimate, but revenue of $4.97 billion missed the $5.02 billion forecast as comparable sales fell 2.8%. Shares rose 0.9%.
• NIO Inc – ADR. (NYSE:NIO) jumped 9% after posting record quarterly revenue of 34.6 billion yuan ($5 billion), beating the 33.2 billion yuan estimate, and recording its first quarterly net profit with gross margins expanding to 17.5% from 11.7% a year earlier.
• Casey’s General Stores, Inc. (NASDAQ:CASY) reported revenue of $3.92 billion, slightly missing the $4.04 billion estimate, while EPS beat forecasts. Shares rose 1.9%.
• Oracle Corporation (NYSE:ORCL), the session’s most anticipated report, is set to release third-quarter fiscal 2026 results after Tuesday’s close, with non-GAAP EPS expected in the range of $1.64–$1.68 on cloud infrastructure demand. ORCL shares traded flat on the day.

Russell 1000’s Top 5 Gainers And Losers On Tuesday

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This article Oil Crashes 10%, Stocks Rebound On Trump End-Of-War Signals: What's Moving Markets Tuesday? originally appeared on Benzinga.com