S&P 500 getting near record highs as Middle East tensions ease

On Tuesday, US stocks demonstrated growth by more than 1%. The increase was mainly driven by easing of tensions in the Middle East. As it was noted by AXS Investments’ CEO in New York Greg Bassuk, a relatively stabilized situation surrounding Iran has led to growing optimism among bulls on the US stock market.

On this background, the S&P 500 rose 67.01 points (+1.11%). Among its 11 main sectors, tech companies posted the biggest gains. Meanwhile, energy stocks showed the most pronounced decline (-1.5%).

US Fed Chair Jerome Powell’s speech before the Congress also influenced the investors’ sentiment. The central bank’s head confirmed his intention to keep monetary policy unchanged until the impact of the new import tariffs on the US economy can be clearly assessed. However, as noted by Reuters, financial markets are pricing in a rate cut delivered by the Fed in July with a more than 20% possibility. According to their estimates, there is a 70% chance of a similar move in September.

This week, the markets’ attention will be focused on the release of the Personal Consumption Expenditures (PCE) reports in the US.