US stock markets opened higher on Tuesday, marking a shift in sentiment after several days of declines.

The rebound reflects a combination of easing geopolitical tensions and continued strength in corporate earnings, which together are helping to restore investor confidence in risk assets.

The broader market advance follows Monday’s rally, which was sparked by reports that the United States and Iran intend to formalize a peace agreement.

That diplomatic development injected a wave of relief into global markets, reducing the premium investors had been charging for geopolitical risk.

The positive momentum carried into Tuesday’s session, with major indices trading in positive territory.

Corporate fundamentals are also providing support.