The Dow Jones Industrial Average gained 0.45%, the S&P 500 added 0.13%, and the Nasdaq Composite advanced 0.03%

U.S. stocks rallied on Tuesday, buoyed by AI optimism, while oil prices edged higher amid rising uncertainty over a possible deal to end the Iran-U.S. war.

The U.S. president said talks with Iran continued. Iran is reviewing a proposed agreement with the U.S. to ‌halt their war but has not communicated with latter for a few days, Iranian media reported on Tuesday.

MSCI’s gauge of stocks across the globe ​was up 0.43% after hitting a record high.

Brent futures gained 1.1% to settle at $96 a barrel, ​the highest since May 26.

Anthropic said on Monday it had confidentially filed for a U.S. initial public offering, edging ahead of rival OpenAI in a closely watched race to reach public markets. Alphabet is also seeking to raise $80 billion in equity to fund the expansion of its AI infrastructure.

This speaks to the huge sums involved in keeping pace in the AI arms race. ‌It represents a significant shift from a period ⁠of bumper free cash flow to going cap in hand to the markets to help fund its expansion, said Russ Mould, investment director at AJ Bell.

On the local stock market, all three indexes closed higher after losing ground in early trade. The Dow Jones Industrial Average gained 0.45%, the S&P 500 added 0.13%, and the Nasdaq Composite advanced 0.03%.

On the economic front, U.S. job openings, a ⁠measure of labor demand, increased more than expected in April, hitting the highest level in nearly two years, according to Labor Department data.

That came after data showed on Monday that U.S. manufacturing beat expectations to hit a four-year high, likely driven by firms front-loading orders amid ​rising ​prices and supply concerns linked to the U.S.-Israeli war with Iran.

The jobs ​data was significantly higher than expected and you ‌would think that it would have boosted rates but they didn’t go up, said Gerry Sparrow, chief investment officer at Sparrow Capital Management.

Employment is strong, which is a good thing for consumer spending. So, I think the market is healthy because of the jobs data, Sparrow said.