The US markets ended sharply higher on Tuesday amid signs of de-escalating Middle East tensions, after reports indicated that U.S. President Donald Trump was willing to wrap up the U.S. military offensive in Iran and push Iran to reopen the Strait of Hormuz through diplomatic efforts. However, there was some cautiousness as Iranian drones struck fuel tanks at Kuwait International Airport, triggering a large fire and damaging the tanks, adding to recent attacks on energy infrastructure. On the economic data front, US house prices rose 0.1% month-on-month in January, with annual gains remaining subdued. Among stocks, Nvidia jumped over 5.6% after unveiling a $2 billion investment in Marvell Technology to expand AI infrastructure via NVLink Fusion.

Nasdaq surged 795.99 points or 3.83 percent 21,590.63, S&P 500 increased 184.8 points or 2.91 percent to 6,528.52 and Dow Jones Industrial Average jumped 1,125.37 points or 2.49 percent to 46,341.51.