Market Rundown: Stocks Surge on Middle East Truce, Fed Cautious on Rates

Market Reaction to Middle East Truce

• 📈 Stocks are rejoicing globally following a ceasefire between Israel and Iran, with the Nasdaq 100 closing at its first record high since February.
• 🛢️ Oil prices edged higher after experiencing their steepest two-day decline since 2022, indicating continued market sensitivity.

Federal Reserve's Stance on Interest Rates

• 🏦 Fed Chair Paul reiterated a cautious approach to easing rates, stating the central bank is in no rush to lower them.
• 📉 He warned that higher tariffs would likely lead to higher inflation this summer, effectively closing the door for a rate cut in July.
• 🗓️ Markets are currently anticipating two rate cuts in 2025, with the first most likely in September.

Tax and Spending Bill Uncertainty

• 🏛️ President Trump urged Congress to pass his tax and spending bill, but senators are disagreeing over the details.
• 💸 Hardliners are pushing for deep spending cuts, with some estimates suggesting the bill could add trillions to the national debt.
• ⏳ Some lawmakers believe the bill might not pass until August.

Company-Specific News

• 📦 FedEx shares tumbled after reporting worse-than-expected profits, citing worsening US-China shipments and uncertainties over trade policies.
• 💡 Micron's stock dropped after its margins missed estimates, despite a strong sales forecast bolstered by demand for its AI products.
• 💰 Micron is set to release its latest quarterly earnings report after the bell, following a significant investment in US manufacturing.