S&P 500 marches higher one day after benchmark wipes out Iran war losses

Stocks moved higher on Tuesday following a strong session in which traders shrugged off a breakdown in peace talks between the U.S. and Iran, yet were optimistic that a deal between the two countries was still possible.

The S&P 500 rose 1.1% and now stands just less than 1% below its 52-week high. The Dow Jones Industrial Average added 285 points, or 0.6%, while the Nasdaq Composite advanced 1.8%.

Technology stocks supported the broader market for another day. Oracle, for example, rose 5%, building on the more than 12% gain it saw in the prior trading day. Nvidia and Palantir Technologies also continued their climb.

Wall Street once again proved resilient in the face of increased geopolitical uncertainty. The major averages posted solid gains to start the week even after U.S.-Iran negotiations over the weekend broke down. President Donald Trump also said Monday that, "We've been called by the other side." He also said: "They'd like to make a deal very badly."

"I don't want to rule out that there could be a re-escalation and more downside from here, but I think it's unlikely. I think the market is already pricing in some level of anxiety about Iran," said Ross Mayfield, Baird investment strategist. "It seems that we're back near all-time highs with a much cleaner positioning incentive and backdrop and on the heels of an earnings season that should kind of facilitate some bullishness as well."