The S&P 500 Index ($SPX) (SPY) Tuesday closed up +1.11%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up +1.19%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +1.53%. September E-mini S&P futures (ESU25) are up +1.11%, and September E-mini Nasdaq futures (NQU25) are up +1.52%.
Stock indexes rallied sharply on Tuesday, with the S&P 500 and Nasdaq 100 posting 4-month highs and the Dow Jones Industrials reaching a 3-1/2 month high. Global equity markets rallied, and WTI crude oil prices plunged more than -6%, after President Trump announced that Israel and Iran had agreed to a tentative ceasefire, spurring hopes for a lasting resolution to the conflict. The easing of geopolitical risks boosted market sentiment and prompted a risk-on for asset markets. Also, the plunge in crude prices reduced inflation expectations and knocked the 10-year T-note yield to a 1-1/2 month low.
