Wall Street Rally Amid Fed's Interest Rate Cut Speculation

Wall Street experienced a rise in stock prices on Monday, thanks to speculations of the U.S. Federal Reserve potentially cutting interest rates as early as July, which helped offset concerns over possible Iranian retaliation to U.S. airstrikes in the Middle East. All three major U.S. stock indexes recorded modest gains.

Consumer discretionary stocks were the top performers, buoyed by Tesla's significant share boost. Federal Reserve officials highlighted risks to the job market and downplayed tariff-related inflation concerns, paving the way for anticipated rate reductions later in the year. The market showed a predominant bullish sentiment.

Despite tensions, oil prices dropped as Iran's response didn't involve blocking the Strait of Hormuz, a critical oil transit route. The economic picture further improved with better-than-expected U.S. economic expansion indicators and new home sales data, amidst advancing market issues on prominent exchanges.

(With inputs from agencies.)