Stock futures rose on Tuesday, fueled by strong quarterly results from companies such as Caterpillar and Palantir Technologies, as oil prices dropped amid optimism that a U.S.-Iran deal to reopen the Strait of Hormuz could be on the horizon.

Dow Jones Industrial Average futures climbed 642 points, or 1.2%, led by a 10% rise in Caterpillar. S&P 500 futures gained 0.4%, while Nasdaq-100 futures
 popped 1.1%, as Palantir rallied more than 15% in premarket trading.

Treasury Secretary Scott Bessent said in an interview on CNBC’s “Squawk Box” that “we are in talks with the Iranians.” He then added, “There is a chance we may have a deal today or tomorrow to open the Strait and move towards a more normalized position in this conflict.”

Oil prices moved lower following Bessent’s comments, with West Texas Intermediate
 futures dropping 3% to around $77 per barrel. Brent crude, the international benchmark, declined 2% to roughly $81 a barrel.

The major stock averages surged in Monday’s session, with the Dow closing at a record high, as Amazon eclipsed $3 trillion in market cap for the first time. Nvidia shares also ripped higher along with Meta Platforms. Google parent Alphabet and Microsoft also popped during the day.

With Monday’s move, the S&P 500 is now just 0.27% away from scoring a fresh all-time intraday high.