The US stock market is on the verge of reaching its all-time high, driven by a significant rally on Monday that saw the S&P 500 index climb 1.5 percent. This surge occurred against a backdrop of conflicting statements from Washington and Tehran regarding the status of negotiations aimed at resolving the war on Iran.

The benchmark S&P 500 now sits just shy of its previous closing record of 7,620.90, set on June 2. The tech-heavy Nasdaq Composite also experienced a substantial increase, jumping 2.1 percent and closing within 4.3 percent of its all-time peak. The Dow Jones Industrial Average, representing 30 large-cap companies, achieved a record high of 53,178.41, marking a 1.3 percent gain.

Leading the market's ascent were several major technology companies, often referred to as the "Magnificent Seven." Meta Platforms, the parent company of Facebook, saw a 6 percent increase, while Microsoft, Amazon, and Alphabet each rose between 4.4 and 4.9 percent. Nvidia, a prominent chip designer, gained 2.9 percent, and electric vehicle manufacturer Tesla climbed 3.5 percent. The broad market strength continued into after-hours trading, with S&P 500 futures showing further gains.

Analysts expressed surprise at the magnitude of the rally, noting that it occurred despite a generally negative market sentiment and without clear fundamental drivers. "I am extremely surprised by the magnitude of the rally," Melissa Brown, managing director of Investment Decision Research at SimCorp, told Al Jazeera. "It comes against the backdrop of relatively negative sentiment, and without a real fundamental reason to support it."

In contrast to the stock market's performance, Brent crude oil, a key international benchmark, experienced a notable decline, falling approximately 5 percent on Monday. However, prices began to recover as Asian markets opened on Tuesday, with September delivery futures trading around $84.50 per barrel. This volatility in oil prices comes amid the ongoing geopolitical tensions.

Asian stock markets showed mixed performance on Tuesday. Japan's Nikkei 225 and Hong Kong's Hang Seng Index both fell by 0.8 percent, while South Korea's KOSPI saw a decline of 1.2 percent. These movements followed earlier gains in early morning trading, highlighting the sensitivity of global markets to geopolitical developments and economic data.

The market fluctuations coincide with President Donald Trump's announcement on Monday that talks with Iran were underway, stating his intention to "give Tehran every last chance" to reach a deal. This statement followed his earlier declaration that he had halted plans for a significant military strike, reportedly after discussions with Gulf leaders.

However, these claims of ongoing negotiations have been met with conflicting accounts from Tehran, adding a layer of uncertainty to the situation. The differing perspectives between Washington and Tehran on the diplomatic front contribute to the complex market dynamics, as investors attempt to gauge the true status of peace efforts while navigating economic indicators and geopolitical risks.