US stock markets staged a mid-session reversal on Tuesday, wiping out early losses to finish in positive territory.
The Dow Jones Industrial Average led the recovery, trading near a new record high as investor sentiment improved sharply in the afternoon session.
The rebound marks a continuation of the relief rally that began Monday, when Wall Street equities advanced on news of a potential formal peace agreement between the United States and Iran.
The prospect of de-escalation in the Middle East has injected confidence into risk assets, helping to offset several days of prior declines.
Traders appear to be balancing geopolitical optimism with underlying corporate strength.
The shift in sentiment reflects a combination of easing tensions and continued resilience in earnings data, which has provided a floor for equity valuations despite earlier volatility.