Markets appear to be rising after the ceasefire between Israel and Iran
- After the obvious end of the escalating war between Iran and Israel, the market continued to risethe threat of inflation means that the Federal Reserve is unlikely to cut interest rates in the near future.
For now, at least for now, it appears that an escalating war between the United States, Iran and Israel is being avoided. The S&P 500 jumped to 1.11% and stocks were fully green as investors relaxed after President Donald Trump announced a ceasefire Monday evening.
Despite the uplift, the bear signal remains on the horizon, with Federal Reserve Chairman Jerome Powell testifying House Financial Services Committee hearing On Tuesday, the central bank is likely to stabilize its fees as the threat of inflation remains. “If inflationary pressure turns out to remain locked in, we will reach a place where we will cut our fees earlier than later, but I don’t want to point out a particular meeting,” Powell said. I said Legislator.
Market relief
Trump yesterday announced a ceasefire between Iran and Israel over a true society, but questions remained as the two countries continued their military operations. Trump too Rush out In Israel on Monday morning, he told the government to fly and “go home.” Still, as published, the ceasefire It will be displayed What the US’s success holds, even if it violates Iran’s nuclear capabilities It remains suspicious.
Despite the enduring uncertainty, investors celebrated the news, and oil prices have fallen as more confusion evaporates and there is a risk that air stocks in airlines such as Delta and United Climbing will evaporate. The market too rose Monday after Iran’s suppressed response to the US strike against Iran over the weekend.
Still, Powell’s testimony before the House of Representatives wrote about the wet sea first. In addition to an overview of central banks’ continued fears about the impact of tariffs on inflation, Powell also increased the possibility of retaliation. Iran’s cyberattack In the US, “government generally spends a lot of it on these things,” he said. “That being said, the bad guys are always getting better, so you can never be comfortable in this area.”
Iran’s cyberattacks have been a problem previously, with the US Treasury authorizing two Iranian companies and four individuals in April last year, in collaboration with Iran’s Islamic Revolution Guard Law Group’s Cyber Sector for a series of phishing and malware attacks against American companies and government employees who compromised email accounts of more than 200,000 employees.
What’s more worrying for investors beyond the threat of cyberattacks is Powell’s resistance to rate reduction despite pressure from Trump. Powell said he expects inflation to rise in the summer. “The economy is still strong so I don’t think we need to hurry. The labour market is strong,” he added.