By Stephen Culp
New York (Reuters)-The New York Stock Exchange ended up on Tuesday when investors were delighted with the ceasefire announced between Israel and Iran, although fragile, also scrutinized comments from the President of the Federal Reserve (Fed), Jerome Powell, in search of signs on the monetary policy of the American central bank.
The Dow Jones index won 1.19%, or 507.24 points, at 43,091.97 points.
The wider S & P-500 took 67.01 points, or 1.11%, at 6,092.18 points.
The Nasdaq Composite advanced 281.56 points (1.43%) to 19,912.53 points.
The three main Wall Street indices finished in the green for a second consecutive session, the S & P-500 approaching its closing record of February 19.
If Israel seemed to have violated the ceasefire announced on Monday evening by US President Donald Trump, investors praised the signals indicating a de-escalation of tensions with Iran.
This truce “really gave thickness to the rebound of the market”, commented Greg Bassuk, managing director of Axs Investments, in New York.
“Investors are betting on the fact that calm in the Middle East is a boon for shares, although this weighs on oil bonds and prices,” he said.
Due to the appeasement of fears with regard to oil supply, crude prices fell and led to a withdrawal from the energy sector.
Speaking in the day before a commission of the American Chamber of Representatives, Jerome Powell reiterated his position according to which the Fed could wait to lower the rates to determine the economic repercussions of the Trump administration customs rights policy.
The financial markets are gaining approximately 20% on a drop in interest rates at the Fed’s July meeting, and almost 70% on the prospect that this first drop in 2025 will take place in September.
A report published during the day shows that consumer confidence in the United States has deteriorated in June, in particular in the face of concerns about the labor market, which fell back since March 2021.
This, as well as other economic data suggesting a slowdown in the American economy, “said an increased probability that the Fed will drop rates this year,” Greg Bassuk said.
Investors await the publication Thursday of the final report of the US trade department on gross domestic product growth (GDP) in the first quarter and then, Friday, the consumer expenses report which should give elements on inflation.
Among the major S&P-500 sectors, technologies recorded the most important gains on Tuesday. Conversely, energy has undergone the strongest withdrawal, by 1.5%.
The values ​​of the air sector have progressed, benefiting from the appeasement of tensions in the Middle East.
Companies in the defense sector, however, fell, like Lockheed Martin and RTX Corp, who lost more than 2%.
Tesla was back compared to the other “Seven Magnificent” of Wall Street, falling by 2.4%.
Coinbase Global and Strategy climbed into the wake of the rise in bitcoin.
Broadcom took 3.9% and established an unprecedented peak after HSBC revised upwards his recommendation for the semiconductor manufacturer.
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