Stocks climb as Trump pushes for Israel-Iran peace

U.S. stocks rose on Tuesday after President Donald Trump announced a ceasefire between Israel and Iran, easing worries about a bigger conflict in the Middle East. The Dow Jones Industrial Average went up 288.65 points, or 0.68%, to 42,870.43. The S&P 500 gained 45.35 points, or 0.75%, reaching 6,070.52, while the Nasdaq Composite climbed 206.04 points, or 1.05%, to 19,837.01.

Investors felt more confident as the truce reduced fears of disruptions in the oil-rich region. However, the peace deal faced challenges. Israel claimed Iran launched a missile soon after the agreement, and Trump accused both sides of breaking the truce. Despite these issues, markets stayed positive, with big tech companies like Tesla, up 2.7%, and Amazon, up 1.8%, leading the gains.

Oil prices dropped as concerns about supply problems faded. Trump’s call for peace came after U.S. strikes on Iranian nuclear sites and Iran’s missile attack on a U.S. base in Qatar. He urged both nations to stick to the ceasefire in a social media post. Meanwhile, Federal Reserve Chair Jerome Powell faced pressure from Trump to cut interest rates but signaled no immediate changes during his Capitol Hill testimony. Investors are now watching closely to see if the fragile truce holds and how it impacts global markets.