Recent news of a ceasefire between Israel and Iran has positively impacted the U.S. stock market, reflected in major indices.
U.S. Stock Market Reacts to Positive News
U.S. stock indices showed gains after the ceasefire announcement between Israel and Iran. On June 24, the Dow Jones rose by 470 points or 1.1%, reclaiming levels it held before the 12-day conflict. The S&P 500 increased by 1.05%, and the tech-focused Nasdaq saw a rise of 1.43%.
Declining Oil Prices as a Positive Signal
Oil prices have also dropped, positively affecting the global economic outlook. The price of crude oil fell to $64 per barrel, down 5.33% in just one day. This decrease followed a peak of $75 during the crisis, marking the highest levels since January this year. Lower oil prices may help cool inflation.
Focus on the Federal Reserve and Interest Rates
With easing tensions in the Middle East, attention is refocusing on the Federal Reserve and interest rates. Chair Jerome Powell, in his testimony before Congress, stated that the Fed would wait for more information before making any changes to interest rates. He expressed concern over the potential effects of Trump's tariffs and possible inflationary pressures.
The rise of the U.S. stock market and falling oil prices create a more optimistic economic atmosphere, while the Federal Reserve will monitor the situation before potential changes to interest rates.
