Stocks look set to extend their gains Tuesday, with futures contracts climbing amid investor hopes that Israel and Iran would abide by a ceasefire announced by President Trump.
As of 8:51 a.m. EDT, S&P 500 futures were up 42 points, or 0.7% while Dow Jones Industrial Average futures added 274 points, or 0.6%. Nasdaq Composite futures were up 1%.
“Israel accepted the ceasefire earlier this morning and while some headlines suggest there may have already been a violation, geopolitical concerns are quickly fading from the forefront of the market narrative,” Adam Crisafulli, head of Vital Knowledge, said in a research note.
International markets also rose, with Germany’s DAX climbing 1.8% the CAC 40 in Paris adding 1.2% and Britain’s FTSE 100 up 0.3%. In Asia, Tokyo’s Nikkei rose 1.1%, while The Shanghai Composite index climbed 1.2%.
Oil prices continued to ebb on Tuesday, with U.S. benchmark crude falling 3% to $66.49 per barrel and Brent crude also shedding 3% to $69.38. Prices initially spiked after the conflict started two weeks ago, briefly topping $78 and raising concerns the hostilities could drive up energy costs for Americans.
Israel on June 13 launched an attack on Iran targeting the nation’s nuclear facilities and research scientists. The U.S. stepped up its involvement last weekend when it launched strikes on three Iranian nuclear facilities.
In other events Tuesday that investors are watching, Federal Reserve Chair Jerome Powell will appear before the House Financial Services Committee at 10 a.m. EDT for day one of his semiannual appearance before Congress. He is scheduled to testify before the Senate Committee on Banking, Housing and Urban Affairs on Wednesday.
In his opening statement, Powell echoed remarks from his press conference last week after the Fed held rates steady for a fourth straight meeting. Although the nation’s unemployment rate remains low and the labor market is steady, the economic outlook remains uncertain, he said.
Although the risk from U.S. tariffs have have diminished since April, “increases in tariffs this year are likely to push up prices and weigh on economic activity,” Powell said in his prepared remarks.
The central bank said last week it would maintain the federal funds rate at its current range of 4.25% to 4.5%. The next Fed meeting is scheduled for July 29-30.
The Associated Press
contributed to this report.
Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.
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