US stocks close at record highs as Dow adds over 900 points

US stocks ended Tuesday's session at fresh record highs, supported by strong corporate earnings and lower oil prices, as growing optimism over a potential agreement to fully reopen the Strait of Hormuz boosted investor sentiment.

The Dow Jones Industrial Average rose 1.71%, or 907 points, to 54,085, marking its second consecutive record close.

The S&P 500 gained 1.79%, or 136 points, to finish at a record 7,736, while the Nasdaq Composite jumped 2.59%, or 671 points, to 26,584, also ending at an all-time high.

In Europe, the STOXX Europe 600 advanced 0.73% to close at a record 656. The UK's FTSE 100 added 0.20% to 10,879, Germany's DAX rose 0.77% to 26,202, and France's CAC 40 gained 0.61% to 8,666.

In Japan, the Nikkei 225 climbed 0.30% to 63,957, while the broader Topix index was little changed at 3,961.

In oil markets, October Brent crude futures fell 5.26%, or $4.41, to settle at $79.36 a barrel.

US WTI crude futures for September delivery declined 5.69%, or $4.57, to $75.77 a barrel.

Gold futures for December delivery rose 1.52%, or $62.1, to $4,152.6 per ounce.

Robust corporate earnings boosted investors' appetite for risk, while falling oil prices, driven by growing optimism over diplomatic progress regarding the Strait of Hormuz, reinforced expectations that inflationary pressures could ease.