U.S. Stocks Rise as Oil Prices Fall

U.S. stocks rose on Tuesday as oil prices eased amid hopes of a ceasefire between Israel and Iran. The S&P 500 climbed 1.1%, nearing its record high. The Dow Jones jumped 1.2% and the Nasdaq rallied 1.4%. Oil prices fell sharply, easing concerns about global supply disruptions. The market is well supplied, and prices could continue to drop if the ceasefire holds. Lower oil prices may reduce inflation pressure, giving the Federal Reserve room to cut interest rates. Wall Street favors lower rates for economic growth, but fears of inflation remain. The Fed is cautious about rate cuts, monitoring economic impact of tariffs. Trump pushes for rate cuts, while Fed Chair Powell hints at a possible cut in the near future.

In the bond market, Treasury yields eased, with the 10-year yield falling to 4.29%. On Wall Street, Carnival stock surged after strong quarterly results, while Uber and Coinbase also saw gains. The S&P 500 closed at 6,092.18, the Dow Jones at 43,089.02, and the Nasdaq at 19,912.53. Global markets rallied on news of the Israel-Iran ceasefire, with strong gains in Hong Kong and South Korea.