News Of Israel-Iran Ceasefire May Lead To Continued Strength On Wall Street

The major U.S. index futures are currently pointing to a higher open on Tuesday, with stocks poised to add to the strong gains posted in the previous session.

The upward momentum on Wall Street comes after President Donald Trump announced a ceasefire between Israel and Iran is now in effect.

“On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end what should be called ‘THE 12-DAY WAR,'” Trump wrote on Truth Social.

While Israel has accused Iran of violating the ceasefire, traders appear to remain optimistic about easing tensions in the Middle East.

The futures remained firmly positive even as Federal Reserve Chair Jerome Powell indicated the central bank will remain on hold despite pressure from Trump to lower interest rates.

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said in prepared remarks before the House Financial Services Committee.

After some early indecision, investors rallied late in the day to push Wall Street higher on Monday. The major averages all finished the day firmly in positive territory.

For the day, the Dow jumped 374.96 points or 0.9 percent to finish at 42,581.78, while the Nasdaq rallied 183.56 points or 0.9 percent to close at 19,630.97 and the S&P 500 climbed 57.33 points or 1.0 percent to end at 6,025.17.

The major averages opened lower and hugged the unchanged line for much of the day as investors waited for Iran’s response to the weekend U.S. airstrikes on its nuclear sites.

Reports suggesting that Iran may block the Strait of Hormuz sent the markets briefly back into the red, as did reports of an Iranian attack on a U.S. base in Qatar.

However, the markets spiked going into the close after Federal Reserve Vice Chair Michelle Bowman indicated support for a rate cut as early as July, citing concerns about the job market and potential easing of inflationary pressures related to tariffs.

Additionally, reports of potential tariff reductions between the U.S. and China helped ease market anxieties.

For the day, the Dow jumped 374.96 points or 0.9 percent to finish at 42,581.78, while the Nasdaq rallied 183.56 points or 0.9 percent to close at 19,630.97 and the S&P 500 climbed 57.33 points or 1.0 percent to end at 6,025.17.

In economic news, the National Association of Realtors said that existing home sales rose 0.8 percent in May and saw a 6.2 percent increase in unsold inventory. On a yearly basis, existing home sales fell 0.7 percent.

Commodity, Currency Markets

Crude oil futures are plunging $2.59 to $65.92 a barrel after plummeting $5.33 to $68.51 a barrel on Monday. Meanwhile, after climbing $9.30 to $3,395 an ounce in the previous session, gold futures are -tumbling $68.70 to $3,326.30 an ounce.

On the currency front, the U.S. dollar is trading at 144.95 yen compared to the 146.15 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is trading at $1.1608 compared to yesterday’s $1.1578.

Asia

Asian stocks rallied on Tuesday after U.S. President Donald Trump said a ceasefire agreed between Israel and Iran is now in effect.

“On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end what should be called ‘THE 12-DAY WAR,'” Trump wrote on Truth Social.

The dollar weakened on improved risk sentiment and gold tumbled over 1 percent to hover at $3,320 per ounce, while oil slumped to reach their lowest in two weeks as easing geopolitical tensions lowered risk premiums.

China’s Shanghai Composite Index surged 1.2 percent to 3,420.57 on easing Middle East tensions. Huanlejia Food Group shares advanced 3.4 percent after the manufacturer of canned food and fruit beverages said it would invest $21 million to build a coconut processing plant in Indonesia.

Hong Kong’s Hang Seng Index soared 2.1 percent to 24,177.07, with tech and EV stocks leading the way higher.

Japanese markets rose sharply, led by technology stocks. The Nikkei 225 Index closed 1.1 percent higher at 38,790.56 after touching 38,990.11, its highest since mid-February earlier in the day. The broader Topix Index settled 0.7 percent higher at 2,781,35.

Advantest rose 1.6 percent, Tokyo Electron rallied 3.7 percent and SoftBank Group surged 5.6 percent.

A stronger yen weighed on exporters, with Honda Motor falling 1.1 percent and Nissan tumbling 2.6 percent. Inpex Corp. plunged 6.8 percent as oil extended losses after settling more than 7 percent lower on Monday.

Seoul stocks logged strong gains after snapping a five-day winning streak the previous day. The Kospi shot up 3.0 percent to 3,103.64, surpassing the 3,100-point threshold for the first time since September 2021.

Tech stocks topped the gainers list, with Samsung Electronics rising 4.3 percent and SK Hynix surging 7.3 percent.

Australian markets closed higher to snap a five-day losing run. The benchmark S&P/ASX 200 Index jumped 1.0 percent to 8,555.50, with banks and miners pacing the gainers. The broader All Ordinaries Index closed up 1.0 percent at 8,774.80.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index fell 0.5 percent to 12,467.48, marking its fifth consecutive decline and reaching its lowest level in nearly three weeks.

Europe

European stocks are mostly higher on Tuesday after the office of Israeli Prime Minister Benjamin Netanyahu and Iranian state media outlet Press TV confirmed a ceasefire had begun.

In economic news, German business morale improved more than expected in June amid improvement in companies’ future prospects, a survey showed. The Ifo institute’s business climate index rose to 88.4 from 87.5 in May.

The focus now turns to U.S. Federal Reserve Chair Jerome Powell’s upcoming testimony before Congress later in the day.

The German DAX Index is up by 1.9 percent, the French CAC 40 Index is up by 1.2 percent and the U.K.’s FTSE 100 Index is up by 0.4 percent.
Travel-related stocks traded higher, with Carnival and EasyJet surging 6-7 percent.

Defense stocks fell, with Hensoldt falling 2.8 percent and Rheinmetall losing 1.4 percent.

Volvo AB rallied 2.6 percent after its construction equipment unit signed a pact to sell its ownership in China-based SDLG (Shandong Lingong Construction Machinery Co) to a fund predominantly owned by the Lingong Group (LGG).

Educational technology and resources provider RM Plc soared 9 percent after saying it is on track to achieve annual targets.

Bunzl advanced 1.5 percent after announcing its latest acquisition deal to buy Brazilian food packaging business Solupack.

U.S. Economic News

Standard & Poor’s is scheduled to release its report on home prices in major metropolitan areas in the month of May at 9 am ET.

At 9:15 am ET, Cleveland Federal Reserve President Beth Hammack is due to speak on monetary policy before the Barclays-CEPR Monetary Policy Forum 2025.

Federal Reserve Chair Jerome Powell is scheduled to deliver his semi-annual monetary policy report testimony before the House Financial Services Committee at 10 am ET.

Also at 10 am ET, the Conference Board is due to release its report on consumer confidence in the month of June. The consumer confidence index is expected to inch up to 99.0 in June from 98.0 in May.

New York Federal Reserve President John Williams is scheduled to deliver remarks to the Center for Economic Growth and NY CREATES at 12:30 pm ET.

At 1 pm ET, the Treasury Department is due to announce the results of this month’s auction of $69 billion worth of two-year notes.

Boston Federal Reserve President Susan Collins is scheduled to speak before the “State of the Nation’s Housing 2025” event at 2:05 pm ET.

At 4 pm ET, Federal Reserve Board Governor Michael Barr is due to give welcome remarks before a virtual “Fed Listens” event hosted by the Federal Reserve Bank of Kansas City.