Wall Street futures are rallying sharply after a key breakthrough in Middle East tensions. The US stock market surged in early futures trading after Israel accepted President Donald Trump’s ceasefire proposal, easing investor fears of further conflict with Iran. As of the latest data, Dow futures are up by 400 points, S&P 500 futures rose 58 points, and Nasdaq futures jumped 275 points, showing strong market optimism. This ceasefire development has shifted the focus back to economic fundamentals, with eyes now on the upcoming Congressional testimony by Federal Reserve Chair Jerome Powell, set to begin tonight. Meanwhile, global commodities saw sharp moves, particularly in oil and gold, as the geopolitical risk premium dropped significantly.



The gains came after 12 tense days in the Middle East that had rattled global markets and intensified inflation fears. The sharp rally in the US stock market futures is being fueled by reduced geopolitical uncertainty. Israel announced it had accepted a ceasefire brokered by US President Donald Trump, following days of rising tensions with Iran. Iran initially stated no formal agreement was reached but later confirmed through state TV that it would not retaliate if attacks stopped by 4 AM Tehran time.

This signal of de-escalation reassured investors, prompting a broad rally across futures markets. The Dow Jones futures rose by 400 points, S&P 500 added 58, and Nasdaq gained 275 points as of the last update.


One of the biggest impacts of the ceasefire has been seen in oil prices. As fears of a broader conflict faded, Brent crude oil—which had tested $81 per barrel overnight—plunged over 8% last night and dropped another 5% this morning, sliding back below $70 per barrel. This marks one of the steepest two-day declines in recent months.

The rapid fall in oil prices highlights how sensitive global markets are to Middle East tensions. With the immediate threat of war reduced, the premium built into oil due to potential supply disruptions has evaporated.

Oil prices fell to as war-related supply fears eased:

Defense stocks also moved lower:
In a similar reaction, gold prices also saw a decline. As the need for safe-haven assets waned, gold gave up some of its recent gains. The US Dollar Index, which had climbed earlier in the week amid uncertainty, also fell slightly in early Tuesday trading.

These moves reflect a broader return to risk-on sentiment among global investors, with money flowing back into equities and away from safety.

With the ceasefire easing immediate geopolitical concerns, investors are turning their attention to the US economy and monetary policy. A major focal point now is Federal Reserve Chair Jerome Powell’s two-day testimony before Congress, which begins tonight.

Markets will look for clues on how the Fed views inflation, interest rates, and the economic outlook ahead of the July 9 deadline set by President Trump for key fiscal reforms. Traders are also assessing how these developments could impact the central bank’s next move, especially if inflation remains sticky or growth slows.

Markets are reflecting a clear shift to risk-on sentiment after days of uncertainty in the Middle East.
While the ceasefire is a relief for now, analysts remain cautious. Iran has publicly said it won’t retaliate “if Israel stops attacks by 4 AM.” However, there’s still skepticism over how long the ceasefire will last, especially given the high tensions and complex politics in the region.

Israel claimed it had “achieved its objectives” by damaging Iran’s nuclear capabilities, according to reports. If this is seen as a strategic success by Israel, it may avoid further escalation—but that depends heavily on how Iran responds in the coming days.

The US stock market is rallying on the back of easing tensions between Israel and Iran, boosted by a Trump-led ceasefire agreement. While markets are cheering the development, uncertainty lingers in the background. With oil dropping below $70, gold softening, and Fed Chair Powell’s testimony in focus, investors have a lot to digest in the days ahead. Stay tuned for more US Stock Market LIVE updates as the story unfolds.

The US stock market is rising due to the ceasefire deal between Israel and Iran brokered by President Trump.

Q2: How did oil prices react to Trump’s ceasefire deal?
Oil prices dropped over 13% after the ceasefire, falling below $70 per barrel.