After a week where the market felt like it was walking on eggshells, investors finally got a reason to exhale on Tuesday. The catalyst? A dramatic plunge in oil prices, which in turn sparked a broad rally across U.S. stocks. It was a classic risk-on rotation, and it all started with some comments from the White House.

The war in Iran and the threat to the vital Strait of Hormuz had sent crude oil prices screaming toward $120 a barrel just a day earlier, rattling global markets. But on Monday, President Donald Trump offered a different narrative, suggesting the conflict might be winding down.

"It's going to be ended soon," Trump stated. He also addressed the critical shipping lane, saying, "The Strait of Hormuz is going to remain safe," and indicated the U.S. Navy was prepared to escort tankers if necessary. While Iranian authorities signaled they were still ready to fight, the market chose to focus on the potential for de-escalation.

The result was a swift and severe reversal in the energy trade. Crude oil tumbled about 10% to around $85 a barrel during midday trading in New York. That steep drop acted like a pressure valve releasing for the stock market, which had been contending with one of its most volatile stretches since the conflict began.

The major indices all moved higher. The S&P 500 (SPY) rose 0.3%, the Dow Jones Industrial Average (DIA) added 0.4%, and the Nasdaq 100 (QQQ) gained 0.5%. The Russell 2000 (IWM), often a barometer for domestic economic confidence, outperformed with a 0.7% advance.

Perhaps the most telling sign of the shift in sentiment was the Cboe Volatility Index (VIX). The market's so-called "fear gauge" dropped 9.3% to around 23, signaling a meaningful easing of the near-term anxiety that had spiked last week.

Technology stocks led the charge among the 11 S&P sectors, with the Technology Select Sector SPDR Fund (XLK) rising 0.6%. Materials and real estate followed, each gaining 0.4%. On the fixed income side, the 10-year Treasury yield stood at 4.118% and the 30-year at 4.75%.

Tuesday's Performance In Major U.S. Indices

The move was reflected in the major ETFs as well. The Vanguard S&P 500 ETF (VOO) rose 0.32%, the SPDR Dow Jones Industrial Average ETF (DIA) was up 0.45%, the Invesco QQQ Trust (QQQ) rallied 0.50%, and the iShares Russell 2000 ETF (IWM) traded 0.83% higher.

Earnings Provide the Stock-Specific Drama

Against this macro backdrop, several companies reported earnings, adding their own stories to the day's action.

• Kohl's Corporation (KSS) reported a mixed bag. Fourth-quarter adjusted EPS of $1.07 beat the estimate of 85 cents, but revenue of $4.97 billion missed the $5.02 billion forecast as comparable sales fell 2.8%. Shares managed a 0.9% gain.
• NIO Inc (NIO) was a clear winner, jumping 9%. The Chinese electric vehicle maker posted record quarterly revenue of 34.6 billion yuan ($5 billion), beating estimates, and recorded its first-ever quarterly net profit. Gross margins expanded impressively to 17.5% from 11.7% a year earlier.
• Casey's General Stores, Inc. (CASY) saw its shares rise 1.9% after reporting revenue that slightly missed estimates but delivering an earnings per share beat.
• The most anticipated report of the session, however, was still to come. Oracle Corporation (ORCL) is set to release its third-quarter fiscal 2026 results after Tuesday's close. Expectations are for non-GAAP EPS in the range of $1.64–$1.68, driven by cloud infrastructure demand. ORCL shares traded flat ahead of the announcement.

Russell 1000's Biggest Movers

Drilling down into individual stock performance, the Russell 1000 had its share of dramatic swings on Tuesday.

Top Gainers:

Top Losers:

So, Tuesday shaped up as a day where a geopolitical sigh of relief translated directly into market gains. The violent drop in oil prices removed a major inflationary and uncertainty headwind, allowing stocks to rebound from a tense period. The question now is whether the calm holds, or if it's just a temporary respite before the next headline hits.