James Gruber

Software stocks rose 2.6%, logging their biggest two-day gain since May last year.

The

The financial sector edged 0.2% higher.

BlackRock gained 3% after the asset manager reported a rise in first quarter profit, helped by strong inflows into its ETFs and a sharp increase in performance fees.

Citigroup rose 2.7% and hit its highest in nearly two decades after beating first quarter profit estimates, while Johnson & Johnson added 0.9% after reporting earnings.

JPMorgan inched 0.8% lower following its first quarter results, while Wells Fargo declined 5.7% after interest income fell short of market expectations.

Among other stock movers, United Airlines and American Airlines rose 2.1% and 7.6% respectively on reports of merger talks.

Separately, U.S.

producer prices increased less than expected in March, with the producer price index up 0.5% after a downwardly reviant 0.5% gain in February.

And the International Monetary Fund warned a prolonged closure of the Strait of Hormuz could plunge the global economy into its third recession this century.

U.S.

government bond yields fell on Tuesday on the peace talk optimism.

The U.S.

10-year treasury yield dropped five points to 4.25%, while the U.S.

two-year treasury yield declined three points to 3.75%.

To the European markets, the continent-wide FTSE Euro First 300 index ended 1% higher, and the U.K.

FTSE 100 rose 0.3%.

Europe closed at its highest level in over a month on Tuesday, with investors welcoming signs of a resumption in Middle East peace talks, even as companies warned of a fallout from the war.

Industrials and banks boosted the index, rising 1.6% and 2.3% respectively.

Tech shares moved higher, with Dutch semiconductor stocks BE Semiconductor gaining 5.3%, while ASML and ASMI were up 2% and 1.4% respectively.