The shares rose, while oil prices fell again on Tuesday, because investors believed that the sensitive truce between Israel and Iran would be held.
Dow Jones Industrial Average increased by 507.24 points, or 1.19%, and closed at 43.089.02. S & P 500 increased by 1.11% and ended at 6,092.18. A wide market index is now about 0.9% away from its 52-week maximum. Nasdaq Composite increased by 1.43%, stopping at 19,912,53. Nasdaq 100 added 1.53% and closed on a record 22,190.52.
Oil prices are sharply fallen the second day in a row. The American raw oil ended with a decline of 6%, while the international reference value Brent fell by 6.1%. The day before, American raw oil fell by more than 7%. The shares received a swing after oil reached a new minimum for the session, which brought her two-day loss at 13%.
The shares of avenical companies were higher until oil decreased, and the shares of United Airlines and Delta increased by more than 2%. Broadcom and Nvidia rose by almost 4% and 2.6%, as the investor’s appetite was increased.
These moves come at the time President Donald Trump tried to save a fragile truce between Israel and Iran that came into force early on Tuesday morning. Both sides accused the other for violation of the agreement. Israel said that the radar system was attacked near Iranian capital Tehran and accused Iran to launch rocket attacks on Israel, which Iran denies, SEEbiz.
Trump told Truth Social that “Israel will not attack Iran” and added that the truce is still in force. The president previously expressed frustration towards Israel and Iran for violating the agreement, saying that “dissatisfied” with both parties.
“The key event for the market was how fast and limited by the USA, as well as the ‘weak’ response Iran who was in essence choreographed fireworks for domestic consumption,” said Jon Brager, Palmer Square Capital Management. “So even if the truce results in casual tension erasures, the market has decided that this risk is now in the rearview mirror and the focus is likely to return to tariffs and fiscal policy.”
Gains on Tuesday contributed to strong growth on Monday. The main average jumped on Monday after the Qatar Ministry of Defense said that their anti-breathing defense intercepted the Iranian shock retaliating to the US military base. Since the beginning of the week, the main average increased by more than 2%.
Investors also analyzed a new comment of the President of the Federal Reserve of Jerome Powell before the Committee for the Financial Services of the House of Representatives. Powell gave it to the knowledge that the central bank does not rush to reduce interest rates and will wait for how Trump tariffs affect the economy.
Powell’s performance at Capitol Hill comes at a key time: facing the aggressive pressure from the White House to reduce the interest rates – and in recent days of two FED officials they could see the arguments for mitigation of monetary policy already in July.
