US Stocks Rally on Iran-Israel Ceasefire,Easing Inflation Concerns
U.S. stocks are on the rise after President Trump declared a ceasefire between Israel and Iran, alleviating concerns that the 12-day conflict would negatively impact global risk sentiment and fuel inflation worries. Despite reports of a violation of the ceasefire agreement, the market remains optimistic.
The ceasefire announcement followed U.S. bombing of Iranian nuclear facilities. Tho, missile fire occurred hours after the declaration. The market’s positive reaction suggests a lack of fear regarding a broader regional conflict.
Investors are keenly awaiting federal Reserve Chair Jerome Powell’s testimony before Congress for insights into the economic outlook.Trump has previously criticized Powell for not lowering rates.The Fed maintained current rates last week.
Other Fed officials have expressed more dovish views. Michelle Bowman indicated support for a July rate cut if inflation remains subdued, echoing similar sentiments from Governor Christopher Waller.
Powell is expected too reiterate concerns about rising inflation due to Trump’s trade tariffs, despite current data not fully supporting this forecast.The market anticipates 225 basis point rate cuts by year-end,with the first expected in September. Michael Barr and Neel Kashkari, also Fed officials, are scheduled to speak later today.
Corporate News and Market Movers
Tesla shares have increased by 2% in premarket trading, building on previous gains. The company officially launched its robotaxi service in Austin, TX, utilizing a small fleet of Model Y vehicles.
Uber’s stock is up by 2.7% following the announcement of autonomous ride services in Atlanta.
Oil stocks, including Exxon Mobil and Chevron, are down approximately 1% due to the ceasefire prompting a sell-off in oil. defense stocks are also experiencing underperformance.
Coinbase and other crypto stocks are benefiting from Bitcoin reaching a one-week high.
Market analysis
the Dow Jones Industrial Average is attempting to break out of its current pattern. Support was found at 41,750, leading to a rebound above the 200-day Simple Moving Average. The price is testing resistance at 42,850, with buyers aiming to push higher toward 43,800 and 44,000. Sellers need to break below 41,750 to bring 41,00
