On Monday, June 23, U.S. markets closed higher as investors were relieved by Iran’s measured response to American airstrikes, easing fears of wider conflict.
The major indexes ended higher, while oil prices plunged sharply after traders bet that global crude supplies would remain stable. Analysts pointed to Iran’s limited military capabilities and lack of strong allies as reasons for the market’s calm reaction despite heightened geopolitical risks in the Middle East.
In economic data, S&P Global’s U.S. services PMI dipped to 53.1 in June from 53.7, slightly above expectations of 52.9. The manufacturing PMI remained unchanged at 52, indicating a steady expansion in factory activity.
Related: Israel Says Iran Broke Trump Ceasefire, Orders’ High-Intensity Strikes’ On Tehran
Consumer and real estate stocks led broad S&P 500 gains Monday, while energy shares fell as oil prices dropped.
The Dow rose 0.89% to 42,581.78, the S&P 500 was up 0.96% to 6,025.17, and the Nasdaq gained 0.94% to 19,630.97.
Asia Markets Today
On Tuesday, Japan’s Nikkei 225 closed 1.16% higher at 38,800.00, led by gains in the Real Estate, Banking, and Textile sectors.
Australia’s S&P/ASX 200 was up 0.95% at 8,555.50, led by gains in the Metals & Mining, Materials, and Financials sectors.
India’s Nifty 50 was up 0.26% at 25,037.10, and the Nifty 500 gained 0.48% to 23,110.60.
China’s Shanghai Composite was up 1.15% at 3,420.57, and Shanghai Shenzhen CSI 300 rose 1.20% to 3,904.03.
Hong Kong’s Hang Seng closed the session 2.06% higher at 24,177.07.
Eurozone at 05:45 AM ET
The European STOXX 50 index was up 1.77%.
Germany’s DAX index gained 2.15%.
France’s CAC 40 rose 1.45%.
U.K.’s FTSE 100 index traded higher by 0.38%.
European shares jumped as Trump announced an Iran-Israel ceasefire, boosting travel stocks. Energy lagged on falling oil; the STOXX 600 rose, led by airlines and leisure.
Commodities
At 05:45 AM ET, the Crude Oil WTI was trading lower by 3.20% at $66.29/bbl, and Brent was down 3.29% at $68.21/bbl.
Oil prices dropped to two-week lows after Israel accepted Trump’s ceasefire plan with Iran, easing fears of supply disruption and erasing the recent risk premium in crude markets.
Natural gas fell 1.52% to $3.752.
Gold traded lower by 1.85% to $3,332.90, Silver slid 0.50% to $36.005, and Copper gained 0.87% to $4.8920.
U.S. Futures
At 05:45 AM ET, the Dow Jones futures rose 0.77%, the S&P 500 gained 0.89%, and the Nasdaq 100 was up 1.17%.
Forex
At 05:45 AM ET, the U.S. Dollar Index declined 0.41% to 97.99, USD/JPY was down 0.81% to 144.97, and USD/AUD slid 0.78% to 1.5361.
The U.S. dollar fell as ceasefire optimism between Iran and Israel boosted risk appetite. The Dollar Index dropped while the euro, sterling, and yen gained on improving sentiment.
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