On Wednesday, US stocks continued their upward trajectory, with the Nasdaq Composite (^IXIC) and S&P 500 (^GSPC) closing at their highest levels since February. The tech-heavy Nasdaq led the gains, rising about 1.4%, while the S&P 500 added 1.1%. The Dow Jones Industrial Average (^DJI) also rallied, jumping over 500 points, or roughly 1.2%.
The rally came as optimism grew around the fragile US-brokered ceasefire between Israel and Iran, raising hopes for a more lasting end to regional hostilities. Markets were also focused on Fed Chair Jerome Powell's testimony to Congress, where he signaled the central bank could cut interest rates "sooner rather than later" while maintaining flexibility to wait and assess the inflationary impact of new tariffs.
Oil prices continued their descent as the prospect of a lasting truce eased worries about disruption to the supply of crude, centered on the risk that Iran would block the key Strait of Hormuz conduit for tankers. Brent (BZ=F) and West Texas Intermediate (CL=F) futures both moved toward levels seen before the outbreak of the conflict.
Meanwhile, Powell's testimony before the House Financial Services Committee came as Trump turns up the pressure on the Federal Reserve chair to cut interest rates. In prepared remarks, Powell reiterated his stance that the central bank can afford to hold interest rates steady for now, saying, "For the time being, we are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance."
The LIVE COVERAGE IS OVER with 20 updates, including an 11:48 AM UTC update from Allie Canal with the headline "Fed's Powell faces Congress as Trump ratchets up pressure." Other updates include market analysis and commentary on Powell's testimony and its impact on the US economy and financial markets.
