Stocks Climb as Investors Digest Powell's Testimony, Middle East Developments

Written byWallstreet Insight
Tuesday, Jun 24, 2025 4:09 pm ET1min read

U.S. stocks advanced Tuesday, with major indexes building on recent gains as Federal Reserve Chair Jerome Powell struck a measured tone before Congress and geopolitical tensions appeared to stabilize following recent military action in the Middle East.

The Dow Jones Industrial Average rose 507.33 points, or 1.19%, to close at 43,089.1. The S&P 500 added 67.06 points, or 1.11%, ending at 6,092.3, while the Nasdaq Composite surged 281.56 points, or 1.43%, to 19,912.5. Gains were broad-based, with more than three-quarters of stocks advancing across major exchanges, according to market data.

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The rally came despite a sharp drop in crude oil prices. Futures for West Texas Intermediate crude due in August fell $3.68, or 5.37%, to $64.83 a barrel, as of 3:31 p.m. EDT. The contract opened at $67.74 and traded as low as $64.00 during the session. Energy markets appeared to take a cautious view of geopolitical developments in the Middle East after an early ceasefire between Israel and Iran held firm, easing immediate fears of supply disruptions.

CNN reported
that U.S. military strikes on Iran last weekend did not destroy core components of its nuclear program, citing a preliminary intelligence assessment from the Defense Intelligence Agency. The report noted that Iran’s centrifuges remained largely intact and uranium stockpiles were unaffected, suggesting the program was only set back by a few months. The White House disputed the findings, calling the assessment “flat-out wrong” in a statement to CNN.

Meanwhile,

Powell's testimony before the House Financial Services Committee
offered few surprises, which markets interpreted positively. He reiterated that the Federal Reserve remains in “watch and wait mode,” noting that inflation is still “somewhat above” the 2% target while acknowledging that new tariffs could exert upward pressure on prices. “We’re well positioned for the time being to wait to learn more about likely course of economy before adjusting policy,” Powell said, signaling no imminent moves on interest rates.

Investors also found reassurance in Powell’s comments that financial stability risks are not elevated, and that the Fed is closely monitoring data before making further decisions. He emphasized the importance of inflation expectations remaining anchored and refrained from commenting on political or fiscal matters.

Looking ahead,

Micron Technology is set to report earnings
after the bell on Wednesday. The semiconductor giant enters its fiscal third-quarter release with strong momentum, having doubled in value since April. Analysts will be watching closely for updates on high-bandwidth memory (HBM) performance and guidance on
DRAM
and NAND pricing, which have shown signs of strengthening amid booming AI-related demand.

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