Stock Market Today: Dow, S&P 500, Nasdaq Futures Waver as Israel-Iran Ceasefire Holds, Investors Eye Feds Next Move
Futures linked to the Dow Jones Industrial Average, the S&P 500, and the tech-heavy Nasdaq 100 slipped 0.1% on Tuesday as the US-brokered ceasefire between Iran and Israel appeared to be holding. As of Tuesday evening, there had been no reported strikes between Israel and Iran since initial attacks during the ceasefire. Israel lifted nearly all emergency restrictions in the country, and Iran's president, Masoud Pezeshkian, issued a statement marking "the end of a 12-day war that was imposed on the Iranian people."
Stocks jumped and oil prices slid during the day as investors bet the ceasefire would hold. Federal Reserve Chair Jerome Powell's comments before Congress also boosted sentiment. Powell said that the central bank can wait for more economic data before cutting interest rates, but could still act "sooner rather than later."
Investors are now looking ahead to Friday's release of the Fed's preferred inflation gauge, the May Personal Consumption Expenditures (PCE) report, for more clues as to the central bank's next move. Economists expect "core" PCE to have ticked up compared to April.
Asia-Pacific markets were mixed overnight as investors assessed geopolitical developments and fresh signals from the US Federal Reserve. Market sentiment was cautiously optimistic following news of a ceasefire between Israel and Iran, reportedly brokered by US President Donald Trump. The agreement has sparked hopes for de-escalation in the region, though investors remain skeptical on the concept of lasting peace.
In Australia, the S&P/ASX 200 (^AXJO) pushed up 0.1% alongside a broader cooling of monthly CPI following the Reserve Bank cutting interest rates. South Korea's Kospi (^KS11) held steady, while the tech-heavy Kosdaq (^KQ11) slipped 0.4%. Japan's Nikkei 225 (^N225) inched up 0.3%. Hong Kong's Hang Seng Index (^HSI) outperformed much of the region, gaining 0.7%, while China's CSI 300 (000300.SS) index pushed up 0.5%.
Traders across the region are also parsing commentary from the Federal Reserve, as markets look for clues on the trajectory of U.S. interest rates amid persistent inflation concerns. Oil prices rebounded after two days of declines as the tense ceasefire between Israel and Iran was eyed by investors worldwide.
