U.S. stocks rose as oil futures tumbled due to hopes of a resumption in U.S.-Iran negotiations, causing a relief rally that pushed high-risk technology stocks to record highs.

The Dow Jones Industrial Average rose 366.19 points, or 0.71%, to 52048.83.The S&P 500 gained 114.20 points, or 1.49%, to 7764.70 and the tech-heavy Nasdaq Composite jumped 599.55 points, or 2.26%, to 27122.09, a new record high. It was the Nasdaq's first record close since June 2, according to Dow Jones Market Data.

Oil futures fell $4.52, or 4.5%, to $95.78 a barrel. President Donald Trump signalled an openness to meeting Iranian officials coming to New York for a gathering of the United Nations General Assembly. That offset the market impact of ongoing attacks on Saudi Arabian infrastructure from Houthi fighters in Yemen.

Weighing on oil futures was "the fact the U.S. refrained from joining in with the Saudis and proposed a meeting with the Iranian leadership," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management. "It's still a very fluid situation…I'd be surprised for it to be over any time soon, but any positive indication is well received by the market."

The retail price of diesel touched record highs at an average $6.51 a gallon in the U.S., according to the American Automobile Association, or AAA. Congressional leaders proposed a ban on U.S. exports of the fuel, widely used by trucking and shipping lines.

Concerns about inflation and the policy response kept Treasury yields near multiyear peaks.

The yield on the two-year Treasury rose 0.009 percentage point to 4.751%, the highest close since July 1, 2024. The yield on the 10-year Treasury note declined 0.033 percentage point to 4.962%. The yield on the 30-year bond fell 0.031 percentage point to 5.296%.