As the ceasefire between Israel and Iran eased tensions in the Middle East, the New York stock market showed strength.
On the 24th (local time), the Dow Jones Industrial Average rose by 507.24 points (1.19%) to close at 40,389.02. The Standard and Poor's (S&P) 500 index increased by 67.01 points (1.11%) to finish at 6,092.18, while the Nasdaq Composite Index, focused on technology stocks, closed up 281.56 points (1.43%) at 19,912.53.
In the case of the S&P 500 index and the Nasdaq Composite Index, they are approaching their previous peak records set in February and last December, respectively.
The war between the two countries, started by Israel's airstrikes on Iran, has entered a ceasefire, positively impacting the market. In the meantime, Wall Street had been concerned that tensions in the Middle East could lead to soaring oil prices due to a blockade by Iran of the Strait of Hormuz.
Expectations for a rate cut in July have somewhat diminished. Jerome Powell, chair of the U.S. Federal Reserve, reiterated his existing stance of waiting for more information about the economy's trajectory before considering adjustments to the currency policy framework during his testimony before the House of Representatives on this day.
However, expectations that the Federal Reserve will initiate a rate cut in September have increased. According to the CME FedWatch, the interest rate futures market lowered the probability that the Fed will keep rates unchanged at the upcoming monetary policy meeting on September 16-17 to 15%, down from 17% the previous day.
International oil prices plummeted for the second consecutive day due to easing tensions in the Middle East. On this day, Brent crude futures at the London ICE Futures Exchange closed at $67.14 per barrel, down $4.34 (6.1%) from the previous session.