Wall Street Surge: Rate Cuts Boost Confidence Amid Middle East Turmoil

Wall Street experienced a significant rally on Monday as anticipation of interest rate cuts by the Federal Reserve offset brewing anxiety regarding the mounting tensions in the Middle East.

Major U.S. stock indexes registered substantial gains, with consumer discretionary stocks spearheading the surge. Tesla's shares rose sharply following the launch of the robotaxi service in Austin, Texas.

On the economic front, the U.S. displayed stronger-than-expected growth according to purchasing managers' indexes, despite pressure from borrowing costs. As markets prepared for upcoming economic reports, discussions revolved around the potential direction of Federal Reserve policy.

(With inputs from agencies.)