US equity markets posted gains on Tuesday as optimism over a potential de-escalation in the Middle East bolstered investor sentiment.
The Dow Jones Industrial Average led the advance, continuing its recent climb toward record territory as traders rotated into defensive blue-chip names.
The broader market showed mixed performance, with technology stocks lagging the industrial benchmark.
The rally was fueled by reports that the United States has announced further negotiations between Israel and Lebanon.
This diplomatic development has helped ease geopolitical risk premiums that have weighed on global markets in recent weeks.
As tensions appear to cool, capital is flowing back into risk assets, particularly those perceived as stable during periods of uncertainty.