US equities closed Tuesday’s session with the S&P 500 and the Nasdaq Composite at fresh record highs, as traders bet that the Iran-US negotiations in Doha would still produce a workable 60-day Hormuz ceasefire even after the early-morning US strikes on IRGC assets in southern Iran. The S&P 500 gained 0.61 percent to settle at 7,519.12; the Nasdaq rose 1.19 percent to 26,656.18.

The Dow Jones Industrial Average diverged, finishing 118.02 points lower at 50,461.68, a 0.23 percent loss. Industrial heavyweights, especially Caterpillar and Honeywell, weighed on the index amid renewed concern about global trade exposure to a sustained Middle East shock. Boeing was the largest individual loser.

The Russell 2000 index of US small-caps also closed at a fresh record, up 1.07 percent at 2,684.7, as investors continued to migrate down the size curve in a continuing rotation that has built since early May. The Cboe Volatility Index slipped to 14.6, its lowest close in seven weeks.

Technology led the broader gains. Nvidia rose 3.1 percent on continuing momentum from its Vera CPU announcement; Apple gained 2.4 percent on a Morgan Stanley note that called the iPhone 17 cycle “the most catalyst-rich in five years.” Tesla gained 4.6 percent after a Bloomberg opinion piece reignited speculation about a possible SpaceX-Tesla merger.

The Treasury market took a mixed view. Ten-year yields ended the session two basis points lower at 4.28 percent; the two-year ticked one basis point higher to 4.05 percent, narrowing the curve. Federal Reserve funds futures continued to price in roughly 35 basis points of cuts by year-end, with no change to the meeting-by-meeting probability distribution.

Energy sectors were the day’s mixed signal. Brent crude rose more than 3 percent after the morning’s US strikes, briefly reigniting risk-off positioning in Asian and European trading, but US equity investors largely shrugged that off by the New York open. ExxonMobil and Chevron both closed lower despite the underlying commodity move.

Strategists at the major US brokerage desks remained divided about how long the rally can run. Morgan Stanley said in a note that “the Iran framework, even imperfectly delivered, is enough to keep multiples expanding into the summer.” Goldman Sachs cautioned that “the market is pricing the upside case and almost none of the downside,” and that a single material breach of the Doha framework could erase “two to three percent of S&P value inside a session.”