
All three major U.S. stock indexes closed higher
Wall St ends higher as rate cut hopes offset fears of escalating war with Iran

Wall Street rallied on Monday as prospects of the U.S. Federal Reserve cutting interest rates as early as July offset fears that Iran would disrupt crude transport in the Middle East.
All three major U.S. stock indexes closed higher. Consumer discretionary stocks, opens new tab led the gainers, with a solid boost from Tesla.
"The rally is a bit surprising," said Jay Hatfield, CEO and portfolio manager at InfraCap in New York. "In a way the U.S. attack puts an end to the uncertainty of whether the U.S. is going to attack.”
"The market action is extremely bullish because this is the time frame in June when we're supposed to have a pullback," Hatfield added. “People do not want to sell in this market.”
Federal Reserve Vice Chair Michelle Bowman said on Monday that "it is time to consider adjusting the policy rate," as risks to the job market outweigh inflationary concerns related to tariffs. Federal Reserve Bank of Chicago president Austan Goolsbee said that thus far, tariffs have had a more modest economic impact than expected.
Financial markets are pricing in at least two 25-basis-point rate cuts before year-end. The first cut is widely expected to happen in September.
Israel continued to bombard Iran the day after the U.S. joined the war.
Still, oil prices tumbled after Iran's retaliation did not include action to disrupt oil and gas tanker traffic through the Strait of Hormuz. Tehran had warned it would close the Strait of Hormuz, a crucial oil shipping route.
"The markets are reading this as 'hey, we're successful,' we took out their nuclear capabilities and we were able to support any counter-strikes," Nolte said. "I think there was a lot of concern that Iran would do much more than it did.”