Around 10:30 a.m., the CAC 40 was trading up nearly 0.7% at 8,291 points, a performance that nevertheless lagged behind the paneuropean Euro STOXX 50 index, which gained 1%, following Wall Street's lead on Monday.

At the close of the previous session in New York, the S&P 500 rose 1.02% to 6,886.2 points, the Dow Jones gained 0.63% to 48,218.2 points, while the Nasdaq 100 climbed 1.06% to reach 25,383.7 points.

Investor optimism was fueled by statements from Donald Trump, claiming that Iran wished to reach a deal, while ruling out any possibility for Tehran to access nuclear weapons.

The context remains tense, however, as Washington announced a military blockade targeting vessels leaving Iranian ports, while Iran threatened retaliation against the port infrastructure of its Gulf neighbors.

U.S. banks in the spotlight this Tuesday

While they are expected to keep an eye on the evolving situation in the Middle East, investors will also be attentive this Tuesday to the results of banks JPMorgan Chase, Citi, and Wells Fargo, as well as asset manager BlackRock.

More broadly, the earnings season, which truly kicks off this week, will allow market participants to get an initial sense of the concrete impact of the war against Iran and the subsequent surge in energy prices.

"According to MarketWatch data, S&P 500 companies are expected to report year-on-year earnings growth of approximately 13 to 14% in the first quarter of 2026, marking the sixth consecutive quarter of double-digit expansion," notes Linh Tran.

According to this market analyst at XS.com, this "underscores that corporate fundamentals remain solid, serving as a key pillar allowing the market to absorb macroeconomic uncertainties."

"Furthermore, the temporary easing of geopolitical tensions has helped bolster investor confidence, reducing the risk-aversion pressure that previously weighed on the markets," he continues.

LVMH trading update receives cool reception

Pending the wave of quarterly reports expected from across the Atlantic, traders are focusing on European releases since Monday evening, particularly the quarterly trading update from LVMH, which has been coolly received.

Shares in the world's leading luxury goods group fell 2.1%, making it the CAC 40's biggest laggard, following the announcement of a 6% decline in sales within a geopolitical and economic context described by the group as "disrupted."

Conversely, Eurofins Scientific (+5.1%) led the Paris benchmark index after the bioanalytical services provider announced the divestment of its electrical and electronics testing business for a value of 575 million euros.

Elsewhere in Europe, Intertek surged 11.4% in London following the trading update from the inspection and certification services group, as well as the announcement of a potential spin-off of its Energy and Infrastructure division from its testing and quality assurance activities.

Finally, Sika gained 8% in Zurich, as the construction chemicals supplier reaffirmed its 2026 guidance, despite first-quarter revenue falling 7% year-on-year, penalized by currency effects.