With the mediation of U.S. President Donald Trump, Israel and Iran have entered a ceasefire, spreading risk appetite in the market as the three major stock indices of the New York Stock Exchange started with gains of around 1%.
As of 9:50 a.m. EST on the 24th, the Dow Jones Industrial Average rose by 312.11 points (0.73%) to 42,893.89, the Standard & Poor's 500 Index climbed 46.41 points (0.77%) to 6,071.58, and the NASDAQ Composite Index increased by 210.08 points (1.07%) to 19,841.06 at the New York Stock Exchange (NYSE).
President Trump reported that a ceasefire between Israel and Iran went into effect around 1 a.m. EST on the same day. Israel also officially confirmed that the two countries had entered a ceasefire.
Following this news, U.S. stock index futures began to show strength starting from the Asian market, and the gains expanded into European trading. The likelihood of Iran blocking the Strait of Hormuz, a key route for oil transportation, has also decreased, contributing to a more than 4% drop in international oil prices, which in turn lifted stock prices.
Jerome Powell, Chair of the Federal Reserve (Fed), drew attention with his congressional testimony. Powell is scheduled to present the semiannual monetary policy report before the House of Representatives today. In his pre-released testimony, he noted, "The Fed is in a good position to watch the economy a little longer before considering adjustments in monetary policy."
Recently, Michelle Bowman, Vice Chair of the Fed, and Christopher Waller, a Fed Governor, have expressed support for interest rate cuts in July during public appearances, revealing internal disagreements while Powell plans to maintain his existing position.
By sector, finance and technology sectors rose by more than 1%. Among individual stocks, Broadcom increased by 3.72%. The purchase interest is driven by HSBC's upgrade of its investment opinion on Broadcom from "hold" to "buy."
The strength of Broadcom is spreading across the semiconductor stocks. The Philadelphia Semiconductor Index has surged by 2.73% today. All 30 stocks that comprise the index are experiencing gains.
Nvidia is up by 2.18%, and TSMC has risen by over 3%. AMD is up by 5.31%. Carnival, a cruise line operator, has seen its stock price rise by about 3% ahead of its second-quarter earnings report, reflecting expectations for increased demand during the summer vacation season.
International oil prices are sharply dropping today due to the ceasefire between Israel and Iran. As of 10:15 a.m. on the same day, the price of West Texas Intermediate (WTI) for August delivery fell by 4.76% to $65.25 per barrel, while the price of Brent crude for August delivery decreased by 4.73% to $68.09.