NEW YORK, New York - U.S. stocks advanced on Tuesday despite the breakdown of the U.S.-Canada trade deal and the imposition of U.S. sanctions on Iran's trading partners, which appear to be primarily aimed at China. 

"An economic war and maximum pressure will not help resolve the issue. They will only further intensify contradictions and conflicts, cause risks to spill over, disrupt the global economic and financial order, and harm the legitimate rights and interests of other countries," Chinese Foreign Ministry spokesperson Lin Jian said on Tuesday.

"China is closely following the relevant developments and will take all necessary measures to firmly safeguard its own rights and interests," Lin added.

The Standard and Poor's 500 added 24.34 points, or 0.32 percent on Tuesday, to settle at 7,677.20, recovering from an earlier dip as buying interest picked up in the final hours of trading. Volume on the broad index reached 2.208 billion shares. The index traded between a low of 7,650.92 and a high of 7,686.11 during the session.

The Dow Jones Industrial Average climbed 160.01 points, or 0.30 percent, to close at 53,577.17, with all but a handful of its 30 components finishing in the green. Trading volume for the blue-chip gauge totaled 374.406 million shares. The Dow's intraday range spanned from 53,386.37 to 53,675.32.

The tech-heavy NASDAQ Composite outperformed its peers, surging 171.11 points, or 0.66 percent, to end the day at 26,151.30, as megacap growth stocks extended their recent rally. Volume on the Nasdaq reached 5.814 billion shares.

Tuesday's broad-based advance extended Wall Street's winning streak, with the S&P 500 now up for five consecutive sessions. Investors appeared to shrug off lingering concerns about valuation levels, instead focusing on corporate earnings optimism and expectations that the Federal Reserve may signal a more accommodative stance in upcoming policy communications.

U.S. Dollar Edges Higher Against Yen but Slips Against Most Major Currencies 

The U.S. dollar delivered a limp performance in foreign exchange trading on Tuesday, losing marginal ground against most of its major counterparts while eking out a slight gain against the Japanese yen.

The euro inched higher against the greenback, with the EUR-USD pair rising 0.06 percent to settle at 1.1671, as traders shrugged off softer-than-expected eurozone manufacturing data. The British pound also advanced, with GBP-USD climbing 0.10 percent to 1.3646, supported by expectations that the Bank of England will maintain a restrictive monetary policy stance longer than its U.S. counterpart.

Commodity-linked currencies benefited from firmer crude oil and base metal prices. The Australian dollar strengthened 0.17 percent against the greenback, with AUD-USD trading at 0.7162, while the Canadian dollar appreciated 0.11 percent, pushing USD-CAD down to 1.3830. 

The Swiss franc also posted a modest gain, with USD-CHF slipping 0.06 percent to 0.8018, as safe-haven flows into the franc persisted despite the dollar's broader resilience.

The sole outlier was the Japanese yen, which weakened against the dollar. The USD-JPY pair edged up 0.05 percent to 159.19, as the interest rate differential between the U.S. and Japan continued to weigh on the yen, offsetting intermittent intervention fears from Tokyo policymakers.

Currency markets remained range-bound throughout the session, with subdued trading volumes. 

Traders and investors also kept an eye on geopolitical developments, awaiting the fallout from the sanctions on Iran imposed by the Trump administration and the heating up of the Canadian-U.S. trade war. For now, the dollar's modest weakness against most majors underscores a cautious optimism in global markets, though the yen's continued slide remains a point of focus.

Non-U.S. Global Markets Close Divided Tuesday  as Tech Gains Offset European Weakness; 

World stock markets delivered a cautious performance on Tuesday, with Asian and Canadian benchmarks advancing while European indexes struggled for direction, as investors parsed a fresh batch of economic data and braced for upcoming central bank commentary.

In Europe, the region's benchmark EURO STOXX 50 Index edged up 7.65 points, or 0.12 percent, to settle at 6,455.63, supported by modest gains in financials. However, France's CAC 40 bucked the trend, slipping 13.81 points, or 0.16 percent, to close at 8,439.20, weighed down by losses in luxury and consumer goods sectors.

In Germany on Tuesday, the DAX outperformed its peers, jumping 159.54 points, or 0.61 percent, to finish at a record-high 26,266.14. The broader Euronext 100 Index posted a fractional gain of 1.38 points, or 0.07 percent, closing at 1,934.25.

Meanwhile in London, the FTSE 100 added 31.84 points, or 0.29 percent, ending at 10,886.16. 

Canada's S&P/TSX Composite Index also finished higher, rising 243.51 points, or 0.66 percent, to 36,957.63, on volume of 241.925 million shares. The Canadian benchmark was buoyed by strength in energy and financial sectors, tracking firmer commodity prices.

Asian markets closed mostly positive. In Japan, the Nikkei 225 rose 328.34 points, or 0.50 percent, to finish at 65,856.43, while Taiwan's TSEC Capitalisation Weighted Stock Index surged 407.14 points, or 0.91 per cent, to 45,169.46.

In South Korea on Tuesday, the KOSPI Composite Index advanced 45.78 points, or 0.68 percent, to 6,742.74 on trading volume of 286,782 contracts.

Australia's S&P/ASX 200 climbed 61.50 points, or 0.68 percent, to 9,164.60, and the broader All Ordinaries rose 58.20 points, or 0.62 percent, to 9,374.90. In New Zealand Tuesday, the S&P/NZX 50 Gross Index added 110.84 points, or 0.80 percent, ending at 13,992.72. 

Elsewhere in the Asia-Pacific, Singapore's STI Index gained 55.22 points, or 0.97 percent, to 5,735.68, while in India, the S&P BSE SENSEX advanced 286.98 points, or 0.37 percent, to 77,656.09. 

China's SSE Composite Index posted a modest gain of 7.44 points, or 0.19 percent, closing at 3,889.44 on turnover of 3.462 billion shares. 

On the downside, Hong Kong's Hang Seng Index slipped 6.23 points, or 0.02 percent, to finish at 25,511.10, while Malaysia's FTSE Bursa Malaysia KLCI edged down 0.15 points, or 0.01 percent, to 1,736.33. Indonesia's IDX Composite fell 24.02 points, or 0.37 percent, to 6,501.67, tracking weakness in commodity-related stocks.

In the Middle East on Tuesday, Egypt's EGX 30 Price Return Index added 112.20 points, or 0.20 percent, to 55,277.00, with trading volume of 349.668 million shares. Israel's TA-125 rose 16.64 points, or 0.41 percent, to 4,031.59.

In Africa, the South African Top 40 USD Net TRI Index climbed 38.50 points, or 0.52 percent, to 7,377.37.

(This report incorporates quotes retrieved with the assistance of artificial intelligence).

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