U.S. stock futures were mostly flat ahead of Wednesday’s opening bell, as investors appeared cautious following a two-day surge that pushed major indexes to their highest levels in four months.
After back-to-back strong sessions, traders seemed unwilling to commit to new positions, with futures on the Dow Jones, S&P 500, and Nasdaq showing little movement in premarket trading. The recent rally has brought the S&P 500 and Nasdaq Composite within striking distance of their record highs, prompting some to take a wait-and-see approach.
Investors are also watching developments in the Middle East, after a ceasefire between Israel and Iran was declared Tuesday—an agreement brokered by President Donald Trump.
“On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end what should be called ‘THE 12-DAY WAR,’” Trump wrote on Truth Social.
Though both nations have accused each other of violating the truce, markets have reacted with optimism that the ceasefire could hold and help de-escalate tensions in the region.
Market Recap: Stocks Rally to Multi-Month Highs
Tuesday’s trading session saw stocks climb again, building on Monday’s momentum. While gains moderated slightly before the close, all three major benchmarks ended the day firmly in the green. The Nasdaq jumped 281.56 points (1.4%) to 19,912.53, the Dow Jones climbed 507.24 points (1.2%) to 43,089.02, and the S&P 500 advanced 67.01 points (1.1%) to 6,092.18.
Powell Signals Steady Course for Monetary Policy
Federal Reserve Chair Jerome Powell offered few surprises in his latest testimony before the House Financial Services Committee, stating that the central bank would remain cautious and data-driven in its approach to interest rates.
“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell said in his prepared remarks.
His comments suggested the Fed is not yet ready to respond to calls from the Trump administration for rate cuts, even amid ongoing global economic uncertainty.
Consumer Sentiment Falls Unexpectedly
On the economic data front, the Conference Board reported a decline in consumer confidence for June, with its index dropping to 93.0, down from a revised 98.4 in May. Economists had forecast a modest uptick to 99.0, but the data instead showed a more cautious outlook from U.S. households.
Tech and Travel Lead the Gains
Among sectors, semiconductors led the charge, with the Philadelphia Semiconductor Index surging 3.8% to hit a five-month high. Airline stocks also performed strongly, as shown by the NYSE Arca Airline Index rising 3.6%.
Other areas of strength included computer hardware, networking, and biotechnology. In contrast, gold and oil producers underperformed, as investors shifted away from traditional safe havens amid improving risk sentiment.
