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US stocks jumped on Tuesday as President Trump told Israel to halt its strikes on Iran, amid hopes that a fragile US-brokered ceasefire between the two will survive to lay the groundwork for a more permanent end to hostilities.
The Dow Jones Industrial Average (^DJI) popped about 0.9%, or roughly 400 points, while the S&P 500 (^GSPC) also added 0.9%. The tech-heavy Nasdaq Composite (^IXIC) led the advance, gaining about 1.3%.
A relief rally has been building amid hopes for a lasting end to the 12-day-old conflict, which has spooked markets with its risks of squeezed oil supply and escalation into full-blown war. On Monday, US stocks rose as Iran’s response to US attacks signaled a desire to deescalate tensions.
On Tuesday, President Trump said that the pause in hostilities had begun. Meanwhile, Israel confirmed it had agreed to a truce brokered by the US and announced by Trump late on Monday.
But just hours later, Israel accused Iran of breaching the ceasefire, saying it had detected missile launches from the country and would respond forcefully to them. Tehran denied that it launched strikes.
Trump has since called on Israel to stop its bombardment, in a post to social media: “ISRAEL. DO NOT DROP THOSE BOMBS. IF YOU DO IT IS A MAJOR VIOLATION. BRING YOUR PILOTS HOME, NOW!” he wrote. He later wrote that Israel is “not going to attack Iran,” saying its planes would turn around, but lashed out at both sides in a public show of frustration.
Oil prices continued a descent as the prospect of a 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.
Investors are also watching Jerome Powell’s testimony before the House Financial Services Committee, 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.”
LIVE 12 updates
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Powell reiterates Fed independence amid Trump criticism
In remarks made on Capitol Hill early Tuesday, Federal Reserve Chair Jerome Powell brushed aside political criticism and reaffirmed the Fed’s commitment to its mission: delivering a strong and stable economy for the American people.
When asked about recent name-calling and public pressure from political leaders, including accusations from President Trump of being “too late” on rate cuts, Powell made it clear that such distractions don’t influence the Fed’s work.
“We’re focused on one thing,” Powell said at the start of his two-day testimony. “And that is we want to deliver a good economy for the benefit of the American people. That’s it. Anything else is kind of a distraction.”
Powell didn’t reference any specific criticism or comments but underscored his approach to the job, saying, “We always do what we think is the right thing to do. And, you know, we live with the consequences. I don’t know how else to do the job.”
Pressed again on whether the American people should be concerned about political attacks swaying the Fed’s independence, Powell added, “I care about doing the job for the American people. The things we do matter a lot for people’s lives, and that really concentrates the mind.”
“You want to just stay focused on that task as long as you’re sitting in these chairs that we occupy. Focus on that task. Do what you think is the right thing and take the consequences.”
‘Well-positioned to wait’
Earlier in his testimony, Fed Chair Jerome Powell reiterated that the central bank can afford to hold interest rates steady for now. In prepared remarks to the House Financial Services Committee, he said, “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.”
Beyond addressing political pressure, Powell also spoke to broader economic challenges facing the Fed, including the impact of tariffs and rising geopolitical tensions in the Middle East.
On inflation, he acknowledged the potential effects of trade: “At this time all forecasters are expecting pretty soon that that some significant inflation will show up from tariffs” Powell said, referencing the Fed’s latest projections of higher inflation and slower economic growth compared to March’s forecast.
As for the conflict between Israel and Iran, Powell urged caution: “It’s too early to know what any economic implications might be. I would not want to speculate. Like everyone else, we are, of course, watching the situation.”
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Circle stock falls, snapping monster rally as Wall Street flags rising risk of stablecoin competition
Yahoo Finance’s Ines Ferré reports:
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Consumer confidence slips in June
Consumer confidence retreated in June after a large increase seen the month prior amid President Trump’s various tariff delays.
The latest index reading from the Conference Board was 93 in June, below the 98.4 seen in May and the 99.8 economists had expected. After seeing its largest one-month increase since May 2009 in the month prior, the expectations index decreased to 69 in June, down from 73.6 in May.
“Tariffs remained on top of consumers’ minds and were frequently associated with concerns about their negative impacts on the economy and prices,” Stephanie Guichard, senior economist of global indicators at The Conference Board, said in the release. “Inflation and high prices were another important concern cited by consumers in June.”
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Stocks extend rally at the open
US stocks jumped on Tuesday after President Trump told Israel to halt its strikes on Iran, amid hopes that a fragile US-brokered ceasefire between the two will hold and lay the groundwork for a more permanent end to hostilities.
The Dow Jones Industrial Average (^DJI) popped about 0.6%, or roughly 275 points, while the S&P 500 (^GSPC) added 0.7%. The tech-heavy Nasdaq Composite (^IXIC) led the advance, gaining about 1%.
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Hims & Hers stock edges higher after brutal sell-off Monday
Hims & Hers Health (HIMS) stock rose modestly in premarket trading Tuesday after plummeting nearly 35% on Monday. The stock gained 0.4% just ahead of the opening bell.
Shares sold off Monday after Novo Nordisk (NVO) announced it would no longer make its blockbuster weight-loss drug, Wegovy, available on the Hims & Hers telehealth platform. Novo Nordisk accused Hims of breaking the law by continuing to sell copycat versions of its drug alongside Wegovy.
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Tesla, Google stocks rise as race for robotaxi expansion heats up
Robotaxi competition is heating up, as two Big Tech firms vying for autonomous driving dominance announced competing rollouts this week.
Following fast on Tesla’s (TSLA) heels, Waymo announced on Tuesday it is rolling out its robotaxi service in Atlanta as part of its partnership with Uber (UBER).
In addition to the Atlanta geography, the more established Alphabet-backed (GOOG, GOOGL) autonomous driving startup now offers self-driving rides in Los Angeles, Austin, Phoenix, and San Francisco and is expected to begin operating in Miami and Washington, D.C., next year.
But Alphabet shares, which rose a little over 1% on Tuesday morning, haven’t received the same investor excitement as Tesla shares.
Tesla stock extended gains in premarket trading on Tuesday after launching its robotaxi service in Austin, Texas, over the weekend. Investors generally viewed the rollout as successful, despite some reported hiccups, boosting the stock over 8% on Monday. Tesla shares were up 2% Tuesday morning.
Meanwhile, ride-hailing companies Uber and Lyft (LYFT) also gained premarket. Uber shares were up 3% on the Waymo rollout, while Lyft stock popped 5% after TD Cowen upgraded the stock.
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Wall Street has a short memory for global crises
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Fed’s Powell faces Congress as Trump rate pressure intensifies
Federal Reserve Chair Jerome Powell heads to Capitol Hill today, where he will be grilled by lawmakers on interest rate policy during his semiannual testimony.
Powell faces intensifying pressure from the White House and some of his fellow central bank policymakers, who have recently stated their support for rate cuts at the next policy meeting.
Yahoo Finance’s Jennifer Schonberger reports:
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Nvidia CEO Huang offloads stock under $865M plan
Jensen Huang has started selling Nvidia (NVDA) stock under a plan that allows the CEO to shed up to $835 million worth of shares by the end of the year.
The chipmaker’s shares were up slightly in premarket trading, amid a broader rally stoked by hopes for a break in Middle East hostilities.
Bloomberg reports:
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Good morning. Here’s what’s happening today.
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Trending tickers: DJT, Tesla, UAL and Wolfspeed
Here are some top stocks trending on Yahoo Finance in premarket trading:
Trump Media and Technology Group (DJT) stock rose over 3% in premarket trading on Tuesday after the company announced that its board of directors had authorized a share repurchase programme up to $400 million the day prior.
Tesla (TSLA) stock was up 2% before the bell on Tuesday. The electric vehicle company saw its share price close on Monday 8% up, after CEO Elon Musk’s robotaxi launch in Austin over the weekend.
United Airlines (UAL) shares rose 3% in premarket trading following analysts at Jefferies lifting the airlines price target. Jefferies increased its price target on UAL from $80 to $100.
Wolfspeed (WOLF) stock rebounded on Tuesday and rose by 6% before the bell. The Wall Street Journal reported that the chip supplier had agreed to cut $4.6B debt as part of its bankruptcy agreement.
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Crude futures fall more than $3 with ceasefire news
Oil prices fell more than $3 to drop to the lowest level in over a week as news broke that a ceasefire has been broached between Israel and Iran.
Yahoo! Finances Ines Ferré reports:
