Indexes up: Dow 1%, S&P 500 1%, Nasdaq 1.35%FedEx rises ahead of quarterly resultsAtlanta Fed chief says no rush to cut ratesUS airlines rise on hopes of end to Israel-Iran conflictBroadcom hits record peak after brokerage upgrades

June 24 (Reuters) – Wall Street’s S&P 500 neared a record high on Tuesday as President Donald Trump announced an Israel-Iran ceasefire and Federal Reserve Chair Jerome Powell reiterated interest-rate cuts can wait till the impact of tariffs becomes clearer.

The benchmark S&P 500 (.SPX), opens new tab index and the Nasdaq were about 1.1% and 1.5% below their all-time highs, respectively.

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Financial and technology stocks led the rally among S&P 500 sub-sectors, while energy stocks declined the most, tracking an over 5% drop in crude prices after Trump’s ceasefire announcement eased the threat of Gulf oil supply disruptions.
Airline stocks rose, with American Airlines (AAL.O), opens new tab up 4% and Alaska Air Group (ALK.N), opens new tab gaining 3.6%. Defense stocks Lockheed Martin (LMT.N), opens new tab and RTX Corp (RTX.N), opens new tab fell 2.6% and 3.2%.

Global markets also rallied after Trump called for a halt to hostilities in the Middle East, a sharp turnaround following the U.S. bombing of Iranian nuclear sites over the weekend and Iran’s retaliation by firing missiles at a U.S. base in Qatar.

Hours after the ceasefire commenced, Israel acknowledged striking a radar installation near Tehran in retaliation for Iranian missile launches, but said it had refrained from further attacks beyond that after Trump spoke with Prime Minister Benjamin Netanyahu.

“I think that (ceasefire) gives the market relief, gives it some confidence, and hope that this conflict or this war is not going to be spreading,” said Robert Pavlik, senior portfolio manager at Dakota Wealth.

At 12:05 p.m. ET, the Dow Jones Industrial Average (.DJI), opens new tab rose 441.83 points, or 1.04%, to 43,023.61, the S&P 500 (.SPX), opens new tab gained 59.27 points, or 0.98%, to 6,084.41 and the Nasdaq Composite (.IXIC), opens new tab gained 265.88 points, or 1.35%, to 19,896.86.
Investors also assessed Fed Chair Powell’s comments on monetary policy during a congressional testimony, as he emphasized the central bank’s wait-and-watch approach to interest rates as tariff-driven price pressures become evident.
Powell has been on the receiving end of Trump’s criticisms for not cutting interest rates, with the President hinting at firing the top Fed policymaker or naming a successor soon.

Item 1 of 3 A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 23, 2025. REUTERS/Brendan McDermid/File Photo

[1/3]A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 23, 2025. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab
Atlanta Fed President Raphael Bostic told Reuters the central bank doesn’t need to cut interest rates soon, as companies plan to raise prices due to higher import taxes and the job market is still strong.
The remarks were mirrored by Cleveland Fed President Beth Hammack, who dismissed the need for immediate rate cuts, citing uncertainty about the impact of trade tariffs on inflation, which remains above the central bank’s target.

Market participants are pricing in at least two 25-basis-point rate reductions before year-end, with the first cut seen in September.

Several central bank officials, including Fed Board Governor Michael Barr and Fed Minneapolis President Neel Kashkari, are also scheduled to speak later in the day.

U.S. consumer confidence unexpectedly deteriorated in June amid worries about business conditions and employment prospects over the next six months.
Among megacap stocks, Tesla (TSLA.O), opens new tab shares lost 1.4%.
Package delivery firm FedEx (FDX.N), opens new tab edged up 1.1% ahead of its quarterly results due after the closing bell.
Broadcom (AVGO.O), opens new tab hit a record high, up 3.8%, after HSBC raised the semiconductor manufacturer to “buy” from “hold”.

Advancing issues outnumbered decliners by a 2.86-to-1 ratio on the NYSE and by a 2.9-to-1 ratio on the Nasdaq.

The S&P 500 posted 18 new 52-week highs and no new lows while the Nasdaq Composite recorded 95 new highs and 44 new lows.

Reporting by Kanchana Chakravarty in Bengaluru; Editing by Devika Syamnath

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