Peace Brings Relief: Stock Markets Surge Amid Ceasefire
Oil prices dropped as hopes rose for a peace between Israel and Iran, easing concerns about global oil supply disruptions. This led to a surge in US stocks, with the S&P 500 nearing all-time highs. Falling oil prices may alleviate inflation and provide the Federal Reserve with more flexibility on interest rates.
Global stock markets soared on Tuesday, fueled by the news of a potential ceasefire between Israel and Iran, which alleviated fears about disruptions in global oil supplies.
The S&P 500 rose by 0.9% in morning trading, supported by substantial gains across European and Asian markets. President Trump's announcement of a 'complete and total ceasefire' calmed investor nerves, helping the key Wall Street index recover from a significant decline earlier this year.
Oil prices plummeted, with benchmark US crude and Brent crude both experiencing sharp declines. The stock market rally extended beyond the US, with notable advances in France, Germany, Japan, and strong performances in Hong Kong and South Korea.
(With inputs from agencies.)
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