U.S. Stocks Climb After Trump’s Israel-Iran Ceasefire Announcement

(MENAFN) US equities rallied sharply Tuesday following President Donald Trump’s announcement of a ceasefire agreement between Israel and Iran, effectively halting the conflict that erupted on June 13.

The Dow Jones Industrial Average surged 1.19%, adding 507.24 points to close at 43,089.02.
The S&P 500 climbed 1.11%, ending the session at 6,092.18, while the Nasdaq Composite gained 1.43%, finishing at 19,912.53.

Airline shares outperformed amid a decline in crude oil prices, with United Airlines, Frontier, and Delta all posting gains exceeding 2%.

Technology giants also enjoyed notable advances, as Broadcom rose 3.9% and Nvidia climbed 2.5%, fueled by renewed investor risk appetite.

Trump outlined the phased ceasefire, explaining that Iran would initiate the halt first, followed by Israel 12 hours later, with a complete cessation of hostilities to be declared after 24 hours.

Iranian President Masoud Pezeshkian emphasized, "Iran will abide by a ceasefire if Israel does not violate it."

Meanwhile, Federal Reserve Chair Jerome Powell emphasized that the central bank is prepared to hold off on policy changes, saying they are well-positioned to wait and gather more information about the economy’s trajectory before making any adjustments to their policy approach.

Powell also highlighted the unpredictable consequences of tariffs, cautioning that their impact will vary based on the final rates, and that this year’s tariff hikes are expected to drive prices higher and dampen economic growth.

Oil prices dropped sharply in reaction to the ceasefire news after having recently surged amid fears Iran might block the Strait of Hormuz. Brent crude fell approximately 3.7% Tuesday, settling at $66.80 per barrel.

On the economic front, the US current account deficit widened dramatically, rising 44.3% to $450.2 billion in Q1, surpassing forecasts.

The Conference Board's US Consumer Confidence index also took a surprising dip, falling 5.4 points to 93 in June.

Market anxiety eased as the VIX Index, commonly called the “fear index,” declined 11.85% to 17.48.

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