Dow rises for fourth day in a row; SpaceX gains again: Live updates

Elsewhere, oil prices extended their drop from the prior trading day. Brent crude futures fell 3% to around $80 per barrel after earlier briefly dipping below $80 per barrel — the first time since March. U.S. West Texas Intermediate futures declined 3% to around $77 a barrel.

The Dow on Monday surged more than 400 points on Monday to a record. The S&P 500 and Nasdaq also posted sharp gains after President Donald Trump announced that the U.S. and Iran had reached a deal to end the war in the Middle East.

Pakistani Prime Minister Shehbaz Sharif said that both sides have declared the termination of their military operations on all fronts, with an official signing ceremony to take place this Friday in Switzerland. A senior Trump administration official told CNBC’s Megan Cassella that the memorandum of understanding was already signed electronically on Sunday.

The president also said that the key Strait of Hormuz passageway would reopen on Friday, sending oil prices down nearly 5% on Monday. He later clarified Tuesday that the strait will remain toll free beyond the initial 60-day period.

“We’re not out of the woods yet,” said Andy Goldberg, chief investment strategist at Nomura Asset Management International.

“If all of a sudden oil prices were to come down quickly, the headline inflation number will come down, but at the same time, it’ll put a lot of money back in consumers’ pockets right at a time where they’re feeling pretty good, and that’s how you can get some more inflation,” he added. “Warsh has a balancing act on his hands.”