US stocks jumped on Tuesday morning, with the S&P 500 moving to a new intraday record as investors reacted to company earnings, changing views on artificial intelligence (AI) stocks and developments in the Middle East. The S&P 500 rose about 0.7% shortly after the opening bell and traded around 7,653 points, putting the index near its previous record levels.S&P 500 hits a new intraday record as US stocks rise (Photo by Michael M. Santiago / GETTY IMAGES NORTH AMERICA / Getty Images via AFP) (Getty Images via AFP)The move came as investors looked for the S&P 500 to break above its previous record. A gain of at least 0.13% during the session would put the index above its previous closing record from June 2, according to CNN. The latest rise marks a major recovery for the S&P 500 after a difficult period for US stocks. The index had fallen almost 5% from its recent peak during a roughly two-month decline before starting to recover.Middle East tensions and oil pricesStocks also received a boost from falling oil prices on Tuesday. Oil prices dropped after Treasury Secretary Scott Bessent told CNBC that he believed a deal to reopen the Strait of Hormuz could happen “today or tomorrow,” CNN reported. Investors reacted to Bessent’s comments because the Strait of Hormuz is a major route for global oil shipments.However, investors are still cautious because it is unclear how tensions between Washington and Tehran will develop. CNN reported that Qatar’s Foreign Ministry said Tuesday that efforts to resolve the conflict were in “very progressive stages.” Falling oil prices helped calm some fears about inflation. US Treasury yields also moved lower on Tuesday, reversing part of their sharp rise from the previous week.Dow reaches another recordThe Dow Jones Industrial Average gained 543 points, or about 1%, on Tuesday morning, extending its gains after closing at a record high on Monday. Monday’s close was the Dow’s first record high since July 6. The index also closed above 53,000 points for only the second time ever, CNN reported.Also read: Trump accuses oil companies of making too much money as gas prices stay high amid Iran warThe Nasdaq Composite gained about 1.3% on Tuesday. However, it remained just over 3% below its previous record, which was set in early June. The difference between the major indexes shows that investors are no longer putting all their money into technology stocks. The Dow and S&P 500 have reached record territory while the Nasdaq is still trying to catch up.Strong earnings support stocksAnother major reason for the market recovery is the ongoing quarterly earnings season. Investors are studying company results to see whether businesses can continue to grow despite economic uncertainty. As of July 31, about 61% of S&P 500 companies had reported their earnings, FactSet data cited by CNN showed.Among those companies, 86% reported earnings per share above expectations. Earnings per share, or EPS, is a measure used to show how much profit a company makes for each share of its stock, according to FactSet.Overall, company earnings are showing strong growth. A blended measure that combines reported results with analysts’ estimates is on track to deliver the highest earnings growth rate in five years. Strong earnings are giving investors more confidence that stock prices can remain supported even after the market faces concerns over AI valuations and geopolitical tensions.SpaceX earnings in focusInvestors also have another major event to watch on Tuesday: SpaceX is expected to report its first-ever quarterly earnings as a public company. SpaceX shares rose about 1% to $116 on Tuesday, but the stock remained below the company’s $135 IPO target price, CNN reported.SpaceX’s results are expected to give investors more information about the company’s financial performance and could also provide another major test for investor interest in technology and growth stocks.Market faces seasonal risksDespite the strong gains, investors are not completely confident about the market. August through October has historically been the weakest three-month period for the S&P 500, according to Bank of America. Investors are now watching whether the AI trade can continue to support technology stocks and whether the Nasdaq can eventually return to its previous record high.The market is also closely watching oil prices, Treasury yields and developments around the Strait of Hormuz because changes in any of these areas could quickly affect investor confidence. Craig Johnson, chief market technician at Piper Sandler, said the combination of falling oil prices, lower Treasury yields and broader participation in the stock market points to a positive “risk-on” environment, according to CNN.Johnson also warned that the recovery is not perfect. He pointed to continued headline risks and weak market breadth, saying the current recovery is “good, not great,” CNN reported.For now, the S&P 500’s move to a new intraday record high shows how strongly US stocks have recovered from the market worries seen earlier this summer. Investors are now balancing strong corporate earnings and broader market participation against AI concerns, geopolitical risks and seasonal weakness.