Markets rallied sharply on June 24 as geopolitical risks eased following a tentative ceasefire between Israel and Iran. The S&P 500 gained 1.1%, closing near its all-time high, while the Dow Jones Industrial Average rose 1.19%. The Nasdaq 100 ended at a record high.
The rebound came after President Trump announced a pause on deeper U.S. involvement in the Middle East conflict. Investors responded positively to the de-escalation, shifting funds back into equities. Energy stocks slipped as crude oil prices dropped over 2%, while technology, financials, and healthcare sectors led the rally.
Federal Reserve Chair Jerome Powell’s cautious tone on interest rates further supported market confidence. Powell signaled no immediate rate changes, with analysts now projecting the first cut in September. Bond yields stabilized, and inflation expectations eased alongside falling oil prices.
Overseas markets also strengthened. Gulf region stock exchanges posted gains, driven by renewed investor confidence in regional stability. The UAE and Abu Dhabi indices both advanced. Currency markets reflected reduced risk as the U.S. dollar weakened slightly against major global currencies.
Oil’s sharp two-day decline—down approximately 15%—relieved inflation pressure on consumer goods and transportation, benefiting sectors reliant on lower input costs. Airlines and shipping companies posted strong gains.
The market’s momentum reflects investor optimism but remains sensitive to global developments. Analysts caution that the fragile ceasefire must hold for the rally to sustain. With the Federal Reserve in a holding pattern and geopolitical risk momentarily contained, Wall Street eyes stability heading into the second half of 2025.
