Key Points
- President Trump announced a ceasefire between Israel and Iran on his Truth Social platform.
- The news sparked a relief rally, with stock markets in the U.S. and Asia jumping higher.
- Oil prices dropped more than 3% as fears of a wider conflict eased.
- Investors are also focused on Federal Reserve Chair Jerome Powell’s testimony before Congress for clues on future interest rate decisions.
Global stock markets are soaring, and oil prices are plunging today after President Donald Trump announced a ceasefire agreement between Iran and Israel. In a post on his Truth Social platform, Trump wrote in all caps: “THE CEASEFIRE IS NOW IN EFFECT. PLEASE DO NOT VIOLATE IT!”
The news sent a wave of relief through global markets, which have been on edge over fears of a wider war. In the U.S., futures for the Nasdaq, S&P 500, and Dow Jones all jumped. The rally was already visible in Asia, where Japan’s Nikkei and Hong Kong’s Hang Seng both closed significantly higher. Oil prices, which had been high due to the conflict, slumped by more than 3%.
Even with the ceasefire news, investors are also closely watching Federal Reserve Chair Jerome Powell, who is set to testify before Congress today. It’s his first public appearance since the Fed decided to keep interest rates on hold last week, and everyone will be listening for any hints about the future of the economy and interest rates.
Meanwhile, President Trump continued his public campaign to pressure Powell for rate cuts. “‘Too Late’ Jerome Powell, of the Fed, will be in Congress today to explain, among other things, why he is refusing to lower the Rate,” Trump posted on Truth Social, demanding the Fed’s board “ACTIVATE.”
