The Dow Jones Industrial Average, S&P 500, and Nasdaq all opened in the green on Tuesday, June 24, as Wall Street weighed the strength of the Israeli-Iran ceasefire.
The Dow opened 280 points, or 0.6% higher, while the S&P 500 gained 0.7%. Meanwhile, the Nasdaq Composite rose 1%.
Notably, stocks had closed higher on Monday after President Donald Trump announced that Israel and Iran had agreed to a ceasefire to end what he described as a “12-day war.” This pause in hostilities, taken as a sign of easing tensions, propelled risk assets higher, including crypto.
Bitcoin (BTC) reclaimed $105k as a cheery market responded. Elsewhere, oil prices dipped.
Israel, Iran violate ceasefire
Market sentiment has already signaled a bullish outlook in relation to a ceasefire and end to the war.
However, jitters remain and the gains are not wild. On the concerns list for most traders is the Middle East situation. Israel-Iran remains top of investors’ factors to consider because Israel accused Tehran of violating the ceasefire, vowing a major response.
President Trump nonetheless has strongly urged Israel to “not drop the bombs” and to bring its pilots home.
“ISRAEL. DO NOT DROP THOSE BOMBS. IF YOU DO IT IS A MAJOR VIOLATION. BRING YOUR PILOTS HOME, NOW!’ Trump wrote on Truth Social.
Investors may be cautious amid this unfolding Israel-Iran situation, with prospects of an end to hostilities likely to catalyze gains. Fresh triggers to the conflict, including counter-attacks or U.S. re-entry would spook investors.
“The United States is right to put pressure on both sides to comply with the ceasefire,” Michèle Flournoy, former Under Secretary of Defense, told CNBC in an interview.
Flournoy however says the conflict is “far from over.”
What else are investors watching?
Beyond geopolitical tensions, markets are also watching macroeconomic indicators, especially upcoming tariff negotiation deadlines and potential shifts in interest rates.
Positive developments on either front could provide fresh momentum for equities. This week, attention turns to Federal Reserve Chairman Jerome Powell, who is scheduled to speak Wednesday before the Senate Banking Committee. With the Fed under pressure, Powell’s remarks will be closely parsed for signals on future policy direction.
