Nasdaq 100 index hits record for the first time since the imposition of duties and the Iran crisis

U.S. stocks from the Nasdaq 100 index set their first record in four months - a period that has been rife with market turmoil due to trade wars and geopolitical tensions. Major U.S. indexes rose on June 24 as Iran and Israel agreed to a cease-fire and U.S. Federal Reserve Chairman Jerome Powell gave measured comments on the prospects for rate cuts. Government bond yields and the dollar declined, while oil fell sharply for the second day in a row. One of the main Wall Street bulls now expects the S&P 500 to rise 10% by the end of 2025.

- The Nasdaq 100 index, which includes the largest U.S. technology companies, added 1.5 percent at the close of trading on June 24 and hit a record 22,190.5 points for the first time in four months.

- The broader Nasdaq Composite index of technology stocks strengthened 1.4% to 19,912.5 points. Shares of chipmakers contributed significantly to the rise, with Broadcom up 3.9%, hitting an all-time high; and Nvidia shares jumped 2.6%, reaching their highest value since January.

- The S&P 500 broad market index added 1.1%, ending the session at 6,092.2 points. The benchmark is less than 1% away from a new record high, notes CNBC

- The blue-chip index Dow Jones Industrial Average rose 1.2% in trading on June 24 to close at 43,089 points.

 - The Russell 2000 index of small-cap stocks added 1.3% to close at 2161.2 points.

 - WTI WTI and Brent decreased in price by 5%. In total, oil collapsed by about 13% over the two days. Against the background of falling fuel prices, airline stocks rose: the securities of United Airlines and Delta rose by more than 2%.

- Treasury bond yields and the dollar declined.

The normalization of the situation in the Middle East has boosted gains in the stock market. The stock market rise comes amid attempts by U.S. President Donald Trump to preserve a fragile truce between Israel and Iran that went into effect Tuesday morning, CNBC reported.

Investors also kept an eye on new statements by Fed Chairman Jerome Powell to Congress. He made it clear that the central bank is in no rush to cut rates and will wait for June and July inflation statistics to assess the impact of Trump's customs duties on the economy. At the same time, the White House is actively demanding that Powell ease monetary policy. Two Fed officials this week have already said they may consider easing monetary policy as early as July.

The rise in U.S. stocks was a continuation of solid rise in quotations on Monday: then indices jumped after the Qatari Defense Ministry reported the interception of an Iranian retaliatory attack on a U.S. military base. Since the beginning of the week, the major indices have added more than 2%.

-  «The key takeaway for the market was the quick and limited U.S. response, as well as the 'weak' response from Iran, which was more like a concerted fireworks show for a domestic audience,» said CNBC portfolio manager at Palmer Square Capital Management John Brazier. - So even if the truce leads to isolated outbreaks of violence, the market has decided that that risk is over, and investor attention is now shifting to duties and fiscal policy.»

-  «Powell failed to convince markets of his toughness,» commented Fed chief Andrew Brenner of NatAlliance Securities, as quoted by Bloomberg. - Markets expect Powell to cut rates much faster than his speech today suggests. As for July, nothing is certain yet. We would need a weak jobs report [for that].»

-  A «balanced Powell» shifted the focus from July to September, according to Krishna Guha of Evercore. «The most interesting thing for us was his comment that 'a couple of cuts or perhaps more' would bring the Fed Funds rate back to neutral,» Guha told Bloomberg. - «The sense that policy is only 'moderately' accommodative allows the current level to remain in place while the Fed assesses the impact of duties on inflation and the labor market.»

-  «It's dangerous for investors to overreact to such events - more often than not, they become entry points rather than reasons for extended sell-offs,» noted Barclays strategist Emmanuel Koo. - In the medium term, this could even play into the market's hands and become a bullish factor.»

- Brian Belsky, chief investment strategist at BMO Capital Markets, raised his year-end forecast for the S&P 500 Index to 6,700 points from 6,100 to 6,700, a 10% increase from current levels. He had previously lowered the target benchmark because of turbulence caused by Trump's duties. «The benchmarks we pointed to in April have largely materialized: markets are moving from a 'scare me' reaction to a 'show me' stance. We see growth becoming broader, reactions to daily headlines becoming calmer, and as second-quarter reports are released, more companies will provide actual forecasts,» quotes Yahoo Finance's Belsky note.

This article was AI-translated and verified by a human editor