FX.co ★ Wall Street Rallies as Ceasefire Holds and Oil Plunges

U.S. stocks saw a significant uptick on Tuesday, buoyed by a decrease in geopolitical tensions and a notable decline in oil prices, which together bolstered investor confidence. The S&P 500 climbed by 1.1%, while the Nasdaq saw a 1.5% increase, both approaching their all-time highs, as the Dow Jones Industrial Average soared by over 500 points. This upward trend followed news of a tentative U.S.-mediated ceasefire between Israel and Iran, which, despite reciprocal allegations of breaches, largely appeared to hold. Oil prices tumbled for the second day in a row, with U.S. crude dropping more than 6%, exerting downward pressure on major energy companies such as Exxon Mobil, which fell 3.1%, and Chevron, down 2.3%. In contrast, companies with high fuel consumption, like Delta Air Lines (up 5.8%) and United Airlines (up 2.2%), benefited from this trend. The technology sector saw semiconductor stocks driving growth, with Nvidia gaining 2.1%, Broadcom rising 3.2%, and AMD surging 6.5%. In terms of monetary policy, Federal Reserve Chair Jerome Powell's testimony before Congress maintained a cautious stance, indicating that while the central bank is not in a hurry to change interest rates, it remains amenable to a potential rate cut should circumstances justify such an action.