U.S. Federal Reserve (Fed) officials hinted at the possibility of a rate cut next month, improving investor sentiment, leading to a rise in the New York stock market. The delay in President Donald Trump's decision on military action against Iran also served as a positive factor.
As of 9:35 a.m. Eastern Time on the 20th, the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) was up 146.90 points (0.35%) at 42,318.56, the Standard & Poor's 500 index rose by 27.50 points (0.46%) to 6,008.37, and the Nasdaq index increased by 130.51 points (0.67%) to 19,676.78.
Earlier, Christopher Waller, a Fed governor, said, "A rate cut is possible at the July meeting," and noted, "We are in a position to implement this now." This contrasts with Fed Chair Jerome Powell's remarks that "we will not rush to cut rates, and future policy will be determined by economic indicators."
Geopolitical uncertainties have somewhat eased. President Trump stated that he would "decide within the next two weeks" whether to take military action against Iran and expressed a desire to "allow meaningful negotiation opportunities."
Most sectors are showing an upward trend today. Consumer discretionary is up 1%, while consumer staples, technology, and communication services are up 0.7%, compared to a 0.1% drop in healthcare.
In particular, construction materials corporation GMS is surging 27% on acquisition news. Following QXO, it is reported that Home Depot has also informally made an acquisition proposal, creating a competitive landscape that appears to be stimulating stock prices.
European stock markets are rising across the board. The Euro Stoxx 50 index is up 1.22%. Germany's DAX index has risen 1.49%, the UK's FTSE index is up 0.22%, and France's CAC 40 index is up 0.96%.
International oil prices are falling today. As of 9:39 a.m., the price of West Texas Intermediate (WTI) for July delivery is down 0.32% to $74.90 per barrel, while the global benchmark Brent crude for July delivery has decreased by 3.35% to $76.21 per barrel.