US stock markets opened with modest gains on Tuesday, marking a clear shift in investor sentiment after several days of declines driven by geopolitical uncertainty.

The rebound suggests that traders are beginning to look past the ongoing crisis in Iran and refocusing on domestic economic fundamentals and corporate earnings strength.

The S&P 500 and Nasdaq 100 both started the session in positive territory, continuing a recovery pattern that began earlier in the week.

This follows a Thursday session where the semiconductor sector led a broader market rally, with the Nasdaq 100 advancing 0.61% despite persistent headwinds from the Middle East.

The current move indicates that the initial shock of the geopolitical escalation is being priced in, allowing technical bounces and earnings optimism to regain traction.

The pivot in focus reflects a broader trend of investors weighing the durability of corporate profits against external risks.