US equities closed higher on Tuesday, driven by strength in technology shares as market participants positioned ahead of Nvidia's highly anticipated earnings release scheduled for Wednesday. The Nasdaq 100 Index gained 0.6% by the close in New York, after climbing as much as 1.1% during the session, while the S&P 500 advanced 0.3%. Nvidia shares surged 2.2%, snapping its longest losing streak since 2022, as investors braced for the company's quarterly results due after the bell on Wednesday.

In geopolitical developments, the United States is preparing to redeploy diplomatic personnel to its embassies across the Middle East, signaling that Washington does not anticipate an all-out conflict with Iran. This news pushed Brent crude oil down to approximately $87 per barrel, and the resulting decline in energy prices alleviated concerns about inflationary pressures, contributing to a rally in US Treasuries. José Torres, senior economist at Interactive Brokers, noted, "The market environment this week is more conducive to US Treasury yields reacting positively to the Treasury's buyback program, with weaker-than-expected economic data and lower oil prices boosting momentum in the fixed-income market."

Data released on Tuesday showed that US consumer confidence fell to a seven-month low in August, as households grew more pessimistic about business conditions and the labor market outlook. Jeffrey Roach, chief economist at LPL Financial, commented, "Consumers remain optimistic about the current situation but are increasingly worried about the future. Although the job market remains solid, weakening income growth expectations could weigh on consumer spending."

Market focus is now turning to Federal Reserve Chair's speech scheduled for later this week at the Jackson Hole symposium, where investors will seek clues on the future trajectory of interest rates. Traders are also closely monitoring Nvidia's earnings report to assess whether the artificial intelligence trade remains robust. At the closing bell, the S&P 500 rose 0.3% to 7,677.28 points, the Dow Jones Industrial Average gained 0.3% to 53,577.4 points, the Nasdaq Composite advanced 0.7% to 26,151.3 points, the Nasdaq 100 climbed 0.6% to 29,209.23 points, and the Russell 2000 Index added 0.5% to 3,010.022 points.