Nasdaq rose 1% and hit a fresh all-time intraday high, while the S&P 500 gained 0.7% and the Dow added 150 points.
Oil prices fell hard, with WTI down 3% above $102 and Brent off 2% above $111.
Bitcoin climbed above $81,000 for the first time since January, gaining as much as 7%.
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15:55Nasdaq hits a new high as Bitcoin breaks $81K and oil cools
U.S. stocks pushed higher on Tuesday as traders moved back into risk assets, helped by stronger earnings and a sharp pullback in crude.
The Nasdaq Composite rose 1% and touched a new all-time intraday high, while the S&P 500 gained 0.7%. The Dow Jones Industrial Average added 150 points, or 0.3%, but still trailed the broader rally.
The drop in oil prices also helped calm the market. West Texas Intermediate crude fell 3% to just above $102 per barrel, while Brent crude lost 2% and traded above $111.
Bitcoin also joined the rally, rising above $81,000 for the first time since January, surging by 7% to $81,242, its highest level since Jan. 31, before giving back part of the gain and moving around that level during New York trading. Ether and Solana also climbed, though their gains were more limited.
The rally keeps Bitcoin up about 23% since the U.S.-Israeli war on Iran began, showing that crypto has held up despite the fighting and the oil shock that followed.
Sentiment also got a lift from hopes that U.S. lawmakers may reach a deal on a major stablecoin yield provision, which could help broader crypto legislation advance in the Senate.
Crypto-linked stocks rallied with it. Circle closed 19.9% higher, while Coinbase, the main distributor of Circle’s USDC stablecoin, gained 6.1%. BitGo rose 10.3%, and Galaxy Digital added 3.8%.
The stablecoin yield debate matters because rewards on coins such as USDC have been one of the main reasons users keep money in those tokens, much like earning interest on cash in a bank account.
The updated wording is a clear boost for Circle and Coinbase, but it could hurt smaller crypto firms that depend on high-yield deposit offers to bring in users.
Bank of America analyst Ebrahim H. Poonawala said in a Monday note that the CLARITY Act’s handling of the stablecoin yield issue is a net positive across bank sub-sectors. Ebrahim said it should reduce fears about deposit outflows, cut regulatory uncertainty, and give banks a safer way to work with digital-asset infrastructure.
What to know
Markets turned risk-on Tuesday as cheaper oil, strong earnings, and new crypto optimism pushed Nasdaq and Bitcoin higher while the Dow lagged.
