U.S. stock indexes advanced as they caught up with gains seen in global markets after President Donald Trump indicated that negotiations with Iran were progressing well toward ending the conflict. The S&P 500 increased by 0.6%, and the Nasdaq composite rose 1.1%, pushing both indexes near historic highs despite intermittent volatility.

Meanwhile, the Dow Jones Industrial Average slipped slightly, down 156 points or 0.3%, reflecting a cautious market response to continued fighting in the Middle East. The U.S. military confirmed it conducted “self-defense” strikes targeting missile launch sites and boats deploying mines in southern Iran, heightening tensions even as diplomatic efforts showed signs of progress.

Energy markets experienced mixed movement: Brent crude oil prices rebounded to $96.63 per barrel after falling sharply the previous day, though this only partially recovered a 7.1% loss. U.S. crude oil prices dropped to $93.89 per barrel, reflecting uncertainty around supply given disruptions near the Strait of Hormuz—an essential shipping route closed to many tankers amid the conflict. These supply constraints have contributed significantly to global inflation pressures by limiting oil availability.

Investors showed renewed interest in companies sensitive to fuel costs, with airline stocks like United Airlines jumping 5.6% and cruise operator Carnival gaining 3.2%, benefitting from expectations of easing fuel expenses if a diplomatic settlement is achieved. Lower oil prices also depressed U.S. Treasury yields, with the 10-year note yield falling to 4.50%, easing borrowing costs after a period of rising yields that have threatened to hamper economic growth and investment spending.

Technology shares offered additional support to Wall Street. Micron Technology surged 20.9%, surpassing $900 per share, after UBS analysts raised their 12-month price target substantially on optimism about sustained demand for computer memory. Micron’s stock has nearly tripled this year, reflecting strength in semiconductor markets that remain vital to AI and data center expansions.

Offsetting some gains, AutoZone’s stock dropped 10.8% following a revenue report that missed analyst expectations, despite profits topping forecasts. This decline highlights ongoing sector-specific challenges even amid broader market advances.