The US stock market rebounded after recording a drop yesterday, following a surprise announcement by President Donald Trump.
S&P 500 futures rose 0.6%, Dow Jones added 0.4%, while the technology-focused Nasdaq gained 0.8%.
All major indexes recorded a surge driven by President Trump’s announcement that Israel and Iran had agreed to a ceasefire to end what he called a “12-day war.”
Trump said Iran would initiate a 12-hour pause, followed by Israel, before the two sides formally ended hostilities 24 hours later.
The announcement came after the US bombing attacks on three Iranian nuclear sites, namely Natanz, Fordow and Isfahan on Sunday.
This situation relieved investors following the announcement of a ceasefire between Israel and Iran that has eased tensions in the Middle East.
The hike was also supported by Federal Reserve (Fed) Governor Michelle Bowman signaling a shift towards dovish policy by suggesting a US interest rate cut could be considered at the July meeting if inflation and markets remain positive.
Bowman also expected Trump's tariffs to have a temporary impact on inflationary pressures in the US during a speech in Prague.
Several Fed officials are scheduled to speak this week, most notably Chairman Jerome Powell who will testify before Congress for two days starting Tuesday.
