Trump says Israel and Iran agree to a ceasefire
President Donald Trump says he agreed to a ceasefire after Iran and Iran retaliated for our strike at three nuclear facilities.
US stock futures jump after President Donald Trump announces a ceasefire in the Middle East, but Israel has already accused Iran of breaching its contract.
Trump posted a timeline on social media for the ceasefire between Israel and Iran, outlining that it would have started around midnight in the East. However, within hours, Israel said the launch of a missile from Iran had been detected. Iran refused to fire missiles in Israel after the ceasefire was implemented.
In a social media post, Trump called for Israel to stop dropping bombs to save the armistice. He later told reporters that he thought both sides had broken the ceasefire, but he still believes the ceasefire will be held.
At 7:11am ET, futures linked to the Blue Chip Dow rose 0.69% or 298 points to 43,199. The Broad S&P 500 futures added 0.79% (48.25 points) to 6,125.25. And the high-tech Nasdaq futures have now reached 22,292.50, down to 0.99% (219 points).
Oil prices, which have recently risen as the Israeli-Iran conflict escalates and threatens to spread across the region, have now fallen further, losing more weight from stock. US oil fell 2.79% at $66.60 per barrel.
“From a market perspective, this situation remains all about oil, and oil prices will not rise continuously unless the 20 million barrels of daily flow from the Gulf Coast is effectively destroyed.
Oil prices fell the day after Iran attempted, but stocks had already been collected after it failed to attack U.S. military bases in Qatar. Qatar intercepted the Misal.
“Iran offered a warning and launched a scripted missile attack with little consequence,” said Mike O’Rourke, chief market strategist at Jonestrading.
Federal Reserve Chairman Powell will be speaking.
Once tensions in the Middle East are eased, investors will rely on two-day testimony from Federal Reserve Chairman Jerome Powell before Congress on the economy.
Last week, some Fed members said they were open to rate cuts. Fed Gov. Michelle Bowman immediately expressed support for potential interest rate cuts in July. She said risks to the labour market could rise, but inflation appears to be still heading towards the Fed’s 2% target.
Her comments repeated comments from people of Gov. Christopher Waller last week. He suggested that the central bank could cut interest rates soon next month, as he believes inflation from tariffs is likely to be short-lived.
Chicago Federal President Austan Ghoolsby said the Fed could resume interest rate cuts if inflation from tariffs remains curtailed but did not provide time frames to potential rate cuts.
A lower rate reduces borrowing costs. This usually drives spending. More spending is seen as a boost to the economy and the stock market. Trump is about to pull Powell down soon.
Corporate News
- KB Home surpassed its second-quarter quarter estimates, but lowered its full-year housing revenue guidance. Stocks fell 1.33% in pre-market trading.
- Chewy said it plans to sell $1 billion in Class A common stock through JPMorgan. It also announced a $100 million share buyback program. The pet retailer stock slipped 1.61% before the opening bell.
Medora Lee is a money, market and personal finance reporter for USA Today. mjlee@usatoday.com and Subscribe to our free daily money newsletter Personal finance tips and business news every Monday to Friday.
