Dow jumps 500 points, oil prices tank as investors bet Israel-Iran truce will hold: Live updates
Stocks rose while oil prices plummeted on Tuesday, as investors bet that a delicate ceasefire between Israel and Iran would hold.
TheDow Jones Industrial Averageclimbed 512 points, or 1.2%. TheS&P 500gained 1.1%, and theNasdaq Compositeadvanced 1.5%.
Oil prices were sharply lower for a second-straight day.U.S. crude oilslipped more than 6%, alongside international benchmarkBrent. A day earlier, U.S. crude oil fell more than 7%. Gains for equities gained steam as oil hit a fresh low for the session, which brought its two-day loss to 13%.
Airline stocks were higher as oil pulled back, with shares ofUnited Airlines,FrontierandDeltaall climbing more than 2%.BroadcomandNvidiaadvanced 3% and 2%, respectively, as investor appetite for risk grew.
These moves come as President Donald Trump tried to salvage a fragile ceasefire between Israel and Iran that took effect early Tuesday morning. Both sides have accused the other of violating the agreement.Israel saida radar system close to Iran's capital city Tehran was attacked,and it accused Iran of launching missile strikes against Israel, which Iran denies.
Trump said onTruth Socialthat "ISRAEL is not going to attack Iran," and added that the ceasefire is still in effect. The president earlier expressed frustration toward both Israel and Iran for breaking the agreement by saying he was "unhappy" with both sides.
"The market response to the escalation and subsequent ceasefire hopes aligns with our view that geopolitical shocks have tended to have a temporary impact on global financial markets, and that investors are likely to refocus on fundamentals," Solita Marcelli, UBS Global Wealth Management chief investment officer Americas, wrote Tuesday. "We continue to believe solid fundamentals will help lift equities over the next 12 months."
Tuesday's gains added to Monday's strong advances. The major averages jumped Monday after Qatar's Defense Ministry said that its air defense had intercepted Iran'sretaliatory strikeon a U.S. military base.
Investors also parsedfresh commentaryfrom Federal Reserve Chairman Jerome Powell before the House Financial Services Committee. Powell signaled that the central bank is in no rush to cut interest rates and will wait to see how Trump's tariffs impact the economy.
Powell's appearance on Capitol Hill comes at a pivotal time: He is facingan aggressive pushfrom the White House to cut rates — and in recent daystwo Fed officialshave said they could see a case for dialing back policyas early as July.
—CNBC's Jeff Cox contributed reporting.
Semiconductors outperform
Semiconductors outperformed Tuesday, highlighting the risk-on tilt in the market after President Donald Trump called for a ceasefire in the Middle East. TheVanEck Semiconductor ETF (SMH)gained more than 3%, as did theiShares Semiconductor ETF (SOXX).
Nvidiais up more than 2%.Broadcomhit new all-time highs, up more than 3%.Advanced Micro Devicesjumped more than 5%.
— Sarah Min
18 stocks in the S&P 500 trade at new 52-week highs
On Tuesday, 18 stocks in theS&P 500traded at new 52-week highs.
Of these names, 14 tickers reached new all-time highs. Some stocks that hit this milestone included:
— Christopher Hayes, Lisa Kailai Han
Broadcom shares hit new all-time high
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