Dow Jones Rises 103 Points as Iran Tensions Ease, Fed Rate Cut Hopes Grow

U.S. stocks experienced a mixed performance as geopolitical tensions with Iran eased, with the potential for interest rate cuts by the Federal Reserve providing a counterbalance. The Dow Jones Industrial Average rose by 103 points, driven by gains in Apple and financial stocks. Meanwhile, the S&P 500 index remained relatively unchanged, slipping by 0.03%, and the tech-focused Nasdaq index fell by 0.28%.

Investors were focused on several key developments, both globally and domestically. The temporary halt in escalation between the U.S. and Iran was welcomed by the markets. U.S. President Donald Trump indicated that he would decide within two weeks whether to enter the Israel-Iran conflict, introducing both uncertainty and the possibility of diplomatic engagement. However, Trump has maintained a firm stance on negotiations with Iran, insisting on the complete dismantling of the country’s nuclear program.

On the macroeconomic front, Federal Reserve Governor Christopher Waller suggested that the Fed might cut interest rates as early as July. Waller stated that he does not expect tariffs to significantly increase inflation, which could pave the way for monetary policy easing. However, any decision would require consensus from the full Federal Open Market Committee. Trump, who appointed Waller during his first term, has continued to pressure the Fed to lower rates, repeatedly criticizing Fed Chair Jerome Powell. Despite the pressure, the Fed retains its independence, and Trump has ruled out firing Powell.

In trade news, the U.S. has informed semiconductor manufacturers that they will no longer be allowed to use American technology in their Chinese plants. This move is part of an ongoing effort to curb China’s access to advanced semiconductors, which the U.S. considers a key strategic resource.