US Stocks Surge on Ceasefire Relief, Falling Oil Prices
Wall Street finished significantly higher on Tuesday, buoyed by cooling geopolitical tensions and a continued slide in oil prices.
The S&P 500 and Nasdaq advanced 1.1% and 1.4% respectively, inching closer to fresh record highs, while the Dow rallied 507 points. Investor optimism grew as a US-brokered ceasefire between Israel and Iran appeared to hold, despite minor flare-ups.
Crude oil prices fell for a second day, with US benchmarks dropping over 6%, weighing on energy majors pressuring energy giants like Exxon Mobil (-3%) and Chevron (-2.2%), while giving a boost to fuel-sensitive names such as Delta (+2.7%) and United Airlines (+2.7%). Semiconductor stocks led the tech advance, with Nvidia (+2.6%), Broadcom (+3.9%), and AMD (+6.8%) among the top performers.
On the policy front, Fed Chair Jerome Powell’s congressional testimony struck a cautious tone, indicating the central bank is in no rush to adjust interest rates but remains open to a cut if conditions warrant.
Source : Trading Economics