U.S. Markets Daily Wrap-Up: Stocks Rally, Oil Rebounds, and Fed Policy in Focus

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Index Update:  U.S. stocks rallied on Tuesday, with the S&P 500 and Nasdaq nearing record highs amid easing geopolitical tensions as a ceasefire between Israel and Iran appeared to hold. The Dow also posted strong gains. Oil prices extended their decline, falling nearly 20% from recent peaks. Meanwhile, Fed Chair Jerome Powell maintained a cautious stance on interest rates, expressing openness to cuts if warranted. Investors are now focused on Powell’s Senate testimony, upcoming economic data, and earnings from major firms including General Mills, Micron, and Paychex.

Market Movers:  On Tuesday, the top gainers were Nektar Therapeutics (+156.29%), followed by Youxin Technology Ltd (+95.45%). On the contrary Cellectar Biosciences, Inc (-96.38%) and JIADE LIMITED (- 83.72%) declined the most the same day.

Commodities Update:  Crude oil prices rebounded after a steep two-day decline, with WTI rising above $65 and Brent above $68 per barrel, as markets reacted to the fragile ceasefire between Israel and Iran. President Trump’s unexpected support for Chinese imports of Iranian crude signaled a potential easing of sanctions, contributing to market shifts. Despite the truce, geopolitical uncertainty persists due to limited impact from recent U.S. strikes on Iran’s nuclear sites. Additionally, U.S. crude inventories dropped by 4.28 million barrels, indicating tightening supply and offering further support to prices. Gold prices stabilized around $3,320 per ounce after a recent drop, as easing geopolitical tensions reduced safe-haven demand. However, weak U.S. consumer confidence data fueled expectations of Federal Reserve rate cuts, counterbalancing the decline. While Fed Chair Jerome Powell indicated caution on immediate policy changes, he acknowledged that rate cuts could be considered if economic conditions worsen, particularly amid uncertainty over tariffs.

Macro Update:  U.S. mortgage applications rose 1.1% for the week ending June 20, partially recovering from the previous week’s 2.6% decline. This uptick came despite a slight rise in mortgage rates, driven by concerns over energy prices and fiscal spending. Refinancing applications increased by 3%, while home purchase applications remained largely flat.

Bonds Commentary:  The U.S. 10-year Treasury yield held near a seven-week low around 4.3% as investors assessed the potential for a Federal Reserve rate cut in July. Fed Chair Jerome Powell maintained a cautious tone but left the door open to easing if labor market conditions weaken, a view echoed by other Fed officials. Meanwhile, geopolitical tensions eased with the Israel-Iran ceasefire holding, contributing to falling oil prices, though concerns linger after reports showed U.S. strikes only temporarily disrupted Iran’s nuclear program.

Futures Update:  U.S. stock futures edged slightly higher as investors monitored developments surrounding a tentative ceasefire between Israel and Iran and weighed recent remarks from Federal Reserve Chair Jerome Powell. Major indexes had posted solid gains in the previous session, driven by optimism that the ceasefire would be sustained. The S&P 500 came within 1% of its record high with a gain of over 1.1%, while the NASDAQ rose 1.4% and the Dow Jones advanced 1.2%.

Stocks experienced a significant rally during Tuesday's trading session, continuing the strong upward momentum seen the previous day. The S&P 500 rose by 67.03 points, or 1.11%, closing at 6,092.18. From a technical analysis perspective, the index found support at the 20-period EMA and gradually moved higher, indicating the possibility of a short-term upward trend. Moreover, the 14-period RSI remains in positive territory, suggesting there is still room for additional buying interest and potential further gains. The key support level is approximately 5,944, while resistance is expected around 6,300.