The broad-based S&P 500 index rose 1.8 percent, the industrial-heavy Dow Jones was up 1.7 percent and the tech-heavy Nasdaq Composite Index climbed 2.6 percent.
Palantir, which beat expectations in its interim report on Monday, surged 29.5 percent on Tuesday.
Increases were also seen among chip companies such as Micron Technology and Marvell Technology, which rose 7.6 and 12.8 percent, respectively.
Earlier on Tuesday, US Treasury Secretary Scott Bessent said there was a possibility that an agreement could be reached between the US and Iran as early as Wednesday, which sent oil prices falling on hopes that the Strait of Hormuz would reopen.
A barrel of North Sea oil (Brent) cost just over $79 at the close of trading in the US, while the corresponding price for American WTI oil was just under $76.
