Wall Street Surge: Rate Cuts Boost Confidence Amid Middle East Turmoil

Wall Street soared on Monday driven by expectations of Federal Reserve interest rate cuts, overshadowing Middle East tensions. Major indexes rose, led by consumer discretionary stocks. Fed officials suggest policy rate adjustments due to economic risks. Tesla launched robotaxi services, boosting its shares, amidst resumed U.S.-Israeli military action in Iran.

Wall Street experienced a significant rally on Monday as anticipation of interest rate cuts by the Federal Reserve offset brewing anxiety regarding the mounting tensions in the Middle East.

Major U.S. stock indexes registered substantial gains, with consumer discretionary stocks spearheading the surge. Tesla's shares rose sharply following the launch of the robotaxi service in Austin, Texas.

On the economic front, the U.S. displayed stronger-than-expected growth according to purchasing managers' indexes, despite pressure from borrowing costs. As markets prepared for upcoming economic reports, discussions revolved around the potential direction of Federal Reserve policy.

(With inputs from agencies.)