Stock Market News: Dow Set to Open Up as Iran, Israel Agree to Ceasefire
Stock futures jumped and oil tumbled 4% on Tuesday as news of a cease-fire in the Middle East sent investors piling into risk-on assets and eased concerns about tighter crude supplies.
Israel confirmed the cease-fire with Iran early Tuesday, shortly after President Donald Trump declared the agreement had taken effect. Iran’s Foreign Minister Abbas Araghchi said earlier in a post on X that his country would halt its attacks as long as Israel ended its bombardments.
Futures tracking the Dow Jones Industrial Average rose 384 points, or 0.9%. S&P 500 futures jumped 0.9%, and contracts tied to the tech-heavy Nasdaq 100 gained 1.2%. The three blue-chip indexes had all rallied about 1% the previous session after Iran’s relatively weak response to U.S. strikes.
“De-escalation is leading investors to be more comfortable engaging in risk-on trades in the equity market,” Chris Brigati, CIO at the investment firm SWBC, said in a morning research note. He added that the market’s focus would likely shift to “more fundamental concerns” like tariffs, earnings, and Trump’s signature tax bill.
Oil prices plunged in early trading. The Brent international benchmark dropped 3.9% to $67.80 a barrel, and West Texas Intermediate U.S. prices fell 3.8% to $65.97 a barrel, with the truce easing concerns that the Iran-Israel war could escalate into a broader conflict that would disrupt crude flows from the Middle East.
Federal Reserve Chair Jerome Powell’s visit to Capitol Hill is another factor that could move markets on Tuesday. Powell is set to appear in front of the House Financial Services Committee at a time when traders believe the chances of a July interest-rate cut have risen.
Gold futures dropped 1.8% to $3,335 an ounce on Tuesday as the cease-fire led to investors pivoting away from safe-haven assets. The yield on the benchmark 10-year Treasury note fell 2 basis points to 4.33%. The U.S. Dollar Index, which tracks the greenback against a weighted basket of other currencies, slid 0.2%.