U.S. stocks jump on news of Middle East ceasefire
NEW YORK, June 24 (Xinhua) -- U.S. stocks surged Tuesday as investors welcomed the news of a ceasefire agreement that could bring an end to the Middle East conflict which has unsettled markets in recent weeks.
The Dow Jones Industrial Average rose 507.24 points, or 1.19 percent, to 43,089.02. The S&P 500 added 67.01 points, or 1.11 percent, to 6,092.18. The Nasdaq Composite Index increased by 281.56 points, or 1.43 percent, to 19,912.53.
Nine of the 11 primary S&P 500 sectors ended in green, with technology and financials leading the gainers by adding 1.61 percent and 1.50 percent, respectively. Meanwhile, energy and consumer staples led the laggards by losing 1.51 percent and 0.03 percent, respectively.
U.S. President Donald Trump, who first announced the Iran-Israel ceasefire late Monday, said Tuesday morning that both countries had violated the deal overnight, but he emphasized that the agreement remained in effect. The fragile truce helped ease investor anxiety over a potential escalation, fueling a broad rally across sectors.
"The key event for the market was how quick and limited the U.S. involvement was, as well as the 'weak' response from Iran which was essentially a choreographed fireworks display for domestic consumption," said Jon Brager, portfolio manager at Palmer Square Capital Management. "So even if the ceasefire results in occasional flare-ups, the market has decided this risk is now in the rearview mirror and the focus probably returns to tariffs and fiscal policy."
Markets also drew support from Federal Reserve Chair Jerome Powell's testimony to Congress. Powell said the Fed could cut interest rates "sooner rather than later," even as he stressed the need to monitor the effects of tariff-driven inflation. The dovish tone reinforced investor expectations that the central bank remains flexible in its response to evolving economic conditions.
Meanwhile, the U.S. consumer confidence index dropped by 5.4 points in June to 93.0, down from 98.4 in May, according to The Conference Board. The decline reflects increased consumer unease about current business conditions and the short-term outlook, as optimism about future income, job prospects, and business activity all declined. Despite the weakening sentiment, markets shrugged off the data as geopolitical relief and the prospect of rate cuts took precedence.
Mega-cap technology stocks extended gains from Monday. Broadcom rose 3.94 percent, while Nvidia added 2.59 percent. Amazon climbed 2.06 percent, and Alphabet and Meta Platforms each rose more than 1 percent. Microsoft gained 0.85 percent, and Apple edged lower. Still, Tesla slipped 2.35 percent, giving back part of Monday's sharp rally after the company launched its driverless robotaxi service in Austin.
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