US stock markets settled higher on Tuesday as investors were relieved by the release of President Donald Trump's budget proposal and oil prices inched up in spite of a White House proposal to sell half the country's petroleum reserves.

The Dow Jones Industrial Average rose 43.08 points or 0.21 percent to settle at 20,937.91. NASDAQ 100 index gained 3.94 points or 0.07 percent to close at 5,703.35. The broader S&P 500 index add 4.40 points, or 0.18 percent, to 2,398.42.