New york: The New York Stock Exchange closed the second trading day of the week with gains as investor sentiment improved on hopes that the US and Iran could hold another round of peace talks in the coming days. The Dow Jones added 0.66%, or 317.74 points, to close Tuesday at 48,535.99. The Nasdaq composite rose 1.96%, or 455.35 points, to 23,639.08, while the S and P 500 increased 1.18%, or 81.14 points, to 6,967.38. The Volatility Index (VIX), often called the 'fear index,' dropped 3.97% to 18.36. According to Anadolu Agency, the equity markets welcomed expectations that negotiations between Washington and Tehran could eventually produce a deal to permanently end the war that began on Feb. 28. The two sides met in Islamabad over the weekend but there was no immediate agreement. On Monday, US President Donald Trump said Iranian officials reached out to Washington and were willing to work out a deal. On Tuesday, he mentioned that the talks could restart in Pakistan within the next two days, emphasizing to a New York Post reporter in Islamabad that significant developments could occur soon. Vice President JD Vance, who led the US delegation to Islamabad, also noted progress. Oil prices reacted by plunging following the news. US West Texas Intermediate (WTI) futures dropped 6.9% to $92.20 a barrel as of 2030GMT, while international benchmark Brent crude futures fell 4.2% to $95.15. On the data side, producer inflation in the US rose 4% annually in March, while the monthly producer price index (PPI) increased 0.5%, both below expectations. European markets mirrored the optimism, with the pan-European Stoxx Europe 600 index rising 0.99% to close at 619.95 points. Among major regional indexes, Germany's DAX 40 gained 1.27% to 24,044.22, and the UK's FTSE 100 was up 0.25% to 10,609.06. France's CAC 40 advanced 1.12% to 8,327.86, while Italy's FTSE MIB 30 added 1.36% to 48,175.65. Spain's IBEX 35 index also rose 1.46% to end Tuesday at 18,286.10.