On Tuesday, the S&P 500 Index closed up 1.11%, the Dow Jones Industrials rose by 1.19%, and the Nasdaq 100 increased by 1.53%. Key futures also showed gains, with September E-mini S&P futures up 1.11% and September E-mini Nasdaq futures up 1.52%. This rally was spurred by President Trump’s announcement of a tentative ceasefire between Israel and Iran, lifting market sentiment and contributing to a more than 6% plunge in WTI crude oil prices, which in turn reduced inflation expectations and lowered the 10-year T-note yield to a 1.5-month low.
The June Conference Board consumer confidence index unexpectedly declined by 5.4 points to 93.0, below expectations of 99.8. Additionally, the April S&P CoreLogic composite-20 home price index rose 3.42% year-over-year, weaker than the anticipated 3.90% and marking the slowest growth in 1.75 years. Despite this negative economic news, global equity markets rallied sharply, with the Euro Stoxx 50 rising 1.44% and China’s Shanghai Composite climbing 1.15%.
Chipmakers led U.S. market gains, with Advanced Micro Devices (AMD) and Intel (INTC) both increasing by more than 6%. Airline stocks also climbed following crude prices’ decline, with Carnival (CCL) seeing an increase of over 6%. In contrast, defense contractors like Northrop Grumman (NOC) and energy firms such as Occidental Petroleum (OXY) experienced losses, with the former down more than 3% and the latter also declining by over 3%.
