Noor Trends News, Technical Analysis, Educational Tools and Recommendations
U.S. stock index futures surged on Tuesday following President Donald Trump’s announcement of a ceasefire between Israel and Iran, offering investors some much-needed relief after 12 days of escalating conflict in the Middle East. The announcement calmed market jitters that had weighed on global risk assets and stoked inflation fears.
Market Reactions to the Ceasefire
The news of the ceasefire led to a temporary rally in equities, with the Dow E-minis up by 326 points, or 0.76%, S&P 500 E-minis rising 53.5 points, or 0.88%, and Nasdaq 100 E-minis advancing 252.75 points, or 1.15%. Despite this, the S&P 500 remains about 2% below its record high.
While the ceasefire appeared to bring optimism to markets, tensions still simmered as Israel’s Defense Minister, Israel Katz, reported that Iranian missiles were fired in violation of the agreement. He ordered military action in response, while Iran denied the accusations. The uncertainty surrounding the ceasefire kept markets on edge.
Oil Prices Retreat Amid Easing Supply Concerns
Oil prices dropped to their lowest levels in two weeks, with supply concerns prompted by the Middle East conflict beginning to ease. Brent crude and WTI futures fell sharply, pulling down major U.S. energy stocks in premarket trading. Chevron (NYSE: CVX) and ExxonMobil (NYSE: XOM) were both down by around 1% and 1.7%, respectively.
Focus Shifts to Powell’s Testimony and Economic Data
As the geopolitical situation begins to stabilize, attention is now turning to Federal Reserve Chair Jerome Powell’s testimony before Congress at 10:00 a.m. ET. Investors are eager for insights into the Fed’s near-term interest rate plans, particularly after Fed policymaker Michelle Bowman suggested that a rate cut as soon as July could be a possibility. Additionally, Fed Board Governor Michael Barr and Fed Minneapolis President Neel Kashkari are set to speak later in the day, further fueling speculation about future monetary policy.
This week, all eyes will also be on the Commerce Department’s final read on first-quarter GDP and Personal Consumption Expenditures (PCE) data, key indicators of economic health. Consumer confidence data for June will also be released at 10:00 a.m. ET.
Growth Stocks and Crypto Rally
Meanwhile, megacap and growth stocks saw positive movement, with Tesla (NASDAQ: TSLA) leading the charge, up 2.7%. Google-parent Alphabet (NASDAQ: GOOGL) rose 1.5%, while Amazon.com (NASDAQ: AMZN) gained 1.8%.
Shares of crypto companies also benefitted from the market rebound, with Coinbase Global (NASDAQ: COIN) up 3.2% and Strategy advancing by 1.8%. Bitcoin hit a one-week high, further bolstering investor sentiment in the digital currency space.
Lastly, FedEx (NYSE: FDX) shares rose nearly 1% ahead of its quarterly results, which are due after the closing bell.
As market sentiment improves, all eyes are on Powell’s upcoming testimony and the broader economic data expected to guide the Fed’s next steps in the face of ongoing geopolitical and inflationary concerns.
