US stocks rally on improved inflation data and strong bank earnings, while geopolitical tensions in the Middle East drive oil prices higher and create market uncertainty.

Wall Street stocks climbed on Tuesday following better-than-expected US inflation data showing the consumer price index at 3.5%, combined with strong earnings results from major banks, signaling potential relief for consumers as wage growth outpaces inflation for the first time in months.

Global oil prices notched their largest two-day rise since mid-March, driven by escalating US-Iran tensions; Trump initially proposed a levy on ships transiting the Strait of Hormuz but reversed course the next day, replacing it with trade deals instead.

Middle East tensions escalated with projectiles hitting Iran's Gulf island of Qeshm near the Strait of Hormuz, while Israeli Prime Minister Netanyahu vowed a 'decisive blow' if Iran launches further attacks, creating volatility in energy markets.

Stock market valuations have reached historically elevated levels, with the S&P 500's price and earnings both far above historical trends for the first time since 1950, prompting analyst warnings that the current bull run may be nearing its end.

IBM experienced its worst day on the market in decades after the CEO acknowledged an unexpected spending shift among customers that caught the company off guard, raising concerns about broader technology sector dynamics.

Wage growth in June outpaced inflation for the first time in months, offering potential relief to consumers who have struggled with purchasing power erosion, though economists question when households will feel tangible relief.

Wall Street banks are positioning themselves to benefit from an AI 'super cycle' expected to boost deal-making and corporate financing activity, with financial institutions seeing significant opportunities in the technology sector.

Pakistan's National Assembly Standing Committee pushed for lower smartphone taxes and demanded improved telecom services, highlighting government efforts to reduce consumer costs and strengthen the telecommunications sector.

Yum Brands shares declined nearly 4% following reports that officials are investigating Taco Bell as a potential source in a parasite outbreak, illustrating how food safety concerns continue to impact restaurant stock valuations.

Delivery Hero confirmed advanced negotiations with Uber regarding a potential takeover offer, signaling continued consolidation activity in the global food delivery and ride-sharing industries.