The stock market soars. 5 reasons behind the big surge Tuesday

A broad, booming rally sent the market soaring Tuesday. Among the reasons cited for the run: optimistic comments from Treasury Secretary Scott Bessent, booming earnings and a chart breakout for the S&P 500. The S&P 500 closed above 7,700 for the first time.

Wall Street sent stocks soaring to records on Tuesday as a multitude of factors combined to form a broad rally. The Dow Jones Industrial Average surged more than 900 points for its best day in nearly two months. The S&P 500 jumped nearly 2% to a new all-time high in what became one of its biggest single-day advances of the year.

It's not just one specific news event that's causing the rally. You're getting a succession of events. Multiple positive catalysts tend to have longer legs.

Here are five reasons why the market took off:

1. Bessent's Iran comments to CNBC Treasury Secretary Scott Bessent told CNBC's "Squawk Box" that the U.S. and Iran could reach a deal either Tuesday or Wednesday that would reopen the Strait of Hormuz. "We are in talks with the Iranians," Bessent said in a Tuesday morning interview with CNBC. "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."

Dow futures surged following his commentary on Hormuz, a key passageway for the global crude trade that's become a focal point of the economic impact tied to the monthslong conflict. Oil futures tumbled , further lending support to an equity rally and sending bond yields — another sticking point for investors — tumbling.

The market is "assuming that we're going to be able to handle the closing of the Strait of Hormuz just fine" and that oil prices are going to stabilize longer term. He cautioned, however, that it could still be a headwind if the conflict continues to be extended and oil prices reaches $150 per barrel.

Iran headlines are likely going to keep driving the market. While Tuesday's developments led to a market pop, investors should still be ready for big swings in either direction if tensions once again flare up between the two countries.

You've got decent headlines for Iran. But if for some reason the headlines go the other way, then we just need to keep in the back of our mind to expect some volatility.

2. Earnings are booming A strong earnings backdrop was already underpinning the bull case for many investors this year, but the second quarter results have been positively explosive. The S&P 500 is on track to deliver second quarter earnings growth of 27% on a yearly basis, excluding mark-ups at Google-parent Alphabet and Amazon , according to Bank of America Securities. That's a 4% beat versus the consensus from the start of the earnings season.

War continues to get shrugged off. Earnings are finally winning.

With the inclusion of Alphabet and Amazon, the broader index is on pace to deliver even more incredible earnings growth, of 45% year over year, Bank of America noted.

Right now, I think you're sitting there asking me, 'Oh, what happens if tech misses?' And I'm saying, 'Well, most are in good shape.' Have you checked out the earnings growth rates in hea...