The US markets ended higher on Tuesday after President Donald Trump announced a ceasefire between Israel and Iran. Besides, though both countries have accused each other of violating the ceasefire, traders appeared to remain optimistic about easing tensions in the Middle East. Moreover, investors largely shrugged off comments from Federal Reserve Chair Jerome Powell indicating the central bank will remain on hold despite pressure from Trump to lower interest rates. Further, traders paid no heed towards report released by Conference Board showing an unexpected deterioration by consumer confidence in the month of June. The Conference Board said its consumer confidence index fell to 93.0 in June from a revised 98.4 in May. Meanwhile, street had expected the index to inch up to 99.0 from the 98.0 originally reported for the previous month. 

On sectoral front, significant strength has been seen in Semiconductor stocks with the Philadelphia Semiconductor Index soaring by 3.8 percent to its best closing level in five months. Besides, substantial strength was also visible among airline stocks, as reflected by the 3.6 percent surge by the NYSE Arca Airline Index.

Dow Jones Industrial Average jumped 507.24 points or 1.19 percent to 43,089.02, Nasdaq surged 281.56 points or 1.43 percent to 19,912.53 and S&P 500 shot up 67.01 points or 1.11 percent to 6,092.18.