US equity markets surged on Tuesday, with the Dow Jones Industrial Average closing at a fresh record high.
The broad-based rally marked a decisive shift in sentiment after a period of sustained selling pressure, as investors appeared to take profits on risk-off positions.
The rebound was fueled by a combination of easing geopolitical risks and continued strength in corporate fundamentals.
With tensions surrounding the conflict in Iran showing signs of stabilization, the immediate threat to global supply chains and energy markets diminished, allowing capital to flow back into equities.
European stocks are also expected to open higher, tracking the positive momentum from Wall Street.
Investors are now balancing the improved geopolitical outlook with a busy earnings calendar, looking for confirmation that corporate profitability remains intact despite macroeconomic headwinds.