Stocks Rise Midday as Investors Eye Powell Testimony, Middle East Ceasefire

U.S. equities pushed higher Tuesday morning as markets digested comments from Federal Reserve Chair Jerome Powell and eyed geopolitical developments in the Middle East, even as crude oil prices plunged over 5%.

At 10:47 a.m. ET, the Dow Jones Industrial Average climbed 346.65 points, or 0.81%, to 42,928.4. The Nasdaq Composite rose 229.41 points, or 1.17%, to 19,860.4, and the S&aP 500 added 50.40 points, or 0.84%, to trade at 6,075.57. The Russell 2000, a gauge of smaller companies, outperformed with a 1.15% advance.

The early rally came despite mounting concerns in the energy market, where crude oil futures for August delivery dropped $3.46, or 5.05%, to $65.05 a barrel, as of 10:34 a.m. ET. The sharp decline followed renewed hostilities between Israel and Iran, despite a ceasefire declared earlier by President Donald Trump.

“The ceasefire is now in effect,” Mr. Trump wrote on Truth Social at approximately 9:10 a.m. Dubai time. “PLEASE DO NOT VIOLATE IT!” Yet, just hours later, Israel reported fresh missile launches from Iran, prompting what its defense minister called “powerful strikes against regime targets in the heart of Tehran”

📺 WATCH: The $37 Trillion Lie — Rick Rule Exposes What They’re Not Telling You

The White House attributed the ceasefire to a combination of diplomatic mediation by Qatar and earlier U.S. strikes on Iranian nuclear facilities. Still, the fragile truce appears increasingly at risk. The renewed tensions weighed on crude prices amid expectations of reduced global demand and easing supply fears following Israel’s military de-escalation earlier in the day.

Despite the geopolitical turmoil, risk appetite returned to equity markets, buoyed in part by Chair Powell’s testimony before the House Financial Services Committee. Powell reaffirmed the Fed's commitment to its dual mandate, noting, “The unemployment rate remains low… [and] inflation has come down a great deal but has been running somewhat above our 2 percent longer-run objective”.

He emphasized the Fed is well positioned to “wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.” The central bank has held the federal funds rate steady between 4.25% and 4.5% since the beginning of the year.

Traders interpreted Powell’s remarks as a signal that rate hikes are unlikely in the near term, fueling the morning’s stock rally. Gains were broad-based, with over 73% of NYSE stocks advancing and 85% of issues hitting new highs.

Sentiment also appeared to be lifted by President Trump’s renewed push for a major domestic policy bill. In a Truth Social post this morning, the president called on Congress to immediately pass what he described as “THE GREAT, BIG, BEAUTIFUL BILL,” branding it a “Historic Present for THE GREAT PEOPLE OF THE UNITED STATES OF AMERICA.” He added, “NO ONE GOES ON VACATION UNTIL IT’S DONE”.

While the specifics of the legislation remain undisclosed, the strong language and urgency from the White House added to investor optimism around potential fiscal stimulus heading into the nation’s 250th birthday celebrations.

As markets continue to parse through Powell’s testimony and developments in the Middle East, volatility remains elevated, particularly in energy and defense sectors. Investors will be watching closely for any shifts in oil prices or policy statements that could alter the current bullish tone.