Israel and Iran have officially agreed to a ceasefire, providing a boost to both the S&P 500 (SPX) and the Nasdaq 100 (NDX). Both countries have begun preparations to open up their respective airspaces as the threat of missiles disappears.
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“Both Israel and Iran wanted to stop the War, equally! It was my great honor to Destroy All Nuclear facilities & capability, and then, STOP THE WAR!” said President Trump on Truth Social.
While Trump was able to broker a ceasefire, his efforts to pressure the Fed to lower interest rates remain unsuccessful. On Tuesday, Fed Chair Jerome Powell said that the central bank is in a good position to maintain its “wait-and-see” approach before adjusting interest rates. The Fed has declined to lower rates given the risk of a tariff-driven inflation revival during the second half of the year.
Meanwhile, consumer sentiment took a step back in June, as the Consumer Confidence Index registered a reading of 93.0 compared to the expectation for 99.8 and falling from 98.4 in May. Furthermore, current and future sentiment toward business and labor market conditions fell as consumers remain worried about the effects of tariffs. On the bright side, the 12-month average inflation expectation dropped to 6.0% from 6.4% in May and 7.0% in April.
On the trade front, the European Union is prepared to deliver retaliatory tariff threats to the U.S. in order to secure a better trade deal, reported the Financial Times. Bjoern Seibert, Chief of Staff to the European Commission President, has initiated the process of collecting support to tariff approximately $110 billion of U.S. goods. In addition, the EU may increase tariffs on U.S. technology companies while increasing non-tariff measures on other American companies.
“We’re ready to use a variety of options if there is no deal. We can and we will defend our interests,” said German Chancellor Friedrich Merz.
Finally, a White House official has confirmed that President Trump will meet with Ukrainian President Volodymyr Zelensky during the NATO Summit in The Hague. Zelensky was unable to meet with Trump during the G7 Summit as a result of his early departure in order to address the Israel-Iran war situation.
The S&P 500 closed with a 1.11% gain while the Nasdaq 100 returned 1.53%.
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