Stock Surge Amid Middle East Ceasefire: Market Rebounds with Optimism

U.S. stocks rose as Trump announced a ceasefire between Israel and Iran, easing fears of Middle East conflicts. Financial and tech sectors led the gains, while energy stocks fell. Investors also focused on the Federal Reserve's interest rate stance and upcoming economic indicators amid mixed economic signals.

The U.S. stock market experienced an upswing on Tuesday as President Donald Trump's ceasefire announcement between Israel and Iran alleviated investor concerns about potential conflicts in the Middle East, a key oil-producing region.

S&P 500 sub-sectors, particularly financial and technology stocks, led the market rally. However, energy stocks saw declines, driven by a nearly 5% decrease in crude oil prices, as ceasefire hopes reduced fears of Gulf oil supply disruptions. In contrast, defense stocks such as Lockheed Martin and RTX Corp witnessed notable drops of 1.7% and 2.5%, respectively.

Amidst the geopolitical dynamics, investors also analyzed comments from Federal Reserve Chair Jerome Powell regarding monetary policies. Powell reaffirmed a cautious 'wait-and-watch' approach to interest rates amidst tariff-induced price pressures. This comes after a weekend of heightened tensions, as the U.S. bombed Iranian sites, prompting Iranian missile retaliation at a U.S. base in Qatar. Despite some ceasefire violations, investors welcomed signs of de-escalated hostilities, resulting in a positive stock market trend with key indexes like Dow Jones and Nasdaq seeing gains.

(With inputs from agencies.)