Major Indexes Post Solid Gains as Investors Embrace Risk
The stock market today showed strong performance across all major indexes as investors responded positively to signs of de-escalation in the Middle East conflict. The S&P 500 gained 0.96% to close at 6,025.17, while the Dow Jones Industrial Average climbed 0.89% (374.96 points) to 42,581.78, and the Nasdaq Composite rose 0.94% to 19,630.97.
Tuesday’s rally continued Monday’s upward momentum, with premarket movers indicating strong opening positions across the board. Futures pointed to gains at the open as markets digested Iran’s limited missile strike against a U.S. military base in Qatar, which caused no casualties and was viewed as a measured response that could pave the way for de-escalation.
“Geopolitical risks remain elevated in the Middle East, but the extreme asymmetry of the conflict, coupled with Iran’s relative isolation and ample global oil supplies, will likely keep the fallout contained,” noted Adam Crisafulli of Vital Knowledge.
Oil Prices Plummet as Middle East Ceasefire Takes Shape
Oil markets experienced significant volatility, with crude prices dropping sharply for the second consecutive day. U.S. crude oil fell 7% on Monday to $68.51 per barrel, its lowest level since June 12, while Brent crude, the international benchmark, also declined 7.2% to $71.48.
The dramatic decline came after President Donald Trump laid out plans for a ceasefire between Israel and Iran. Despite some initial violations reported by Israel, traders appeared optimistic that major disruptions to oil supply routes, particularly through the Strait of Hormuz, would be avoided.
Energy stocks were among the day’s biggest losers, with companies like Halliburton (-6.65%), Murphy Oil (-6.10%), and Schlumberger (-5.78%) experiencing significant declines.
Tesla Leads Market Gainers Following Robotaxi Debut
Tesla (TSLA) continued its impressive run, surging 8.33% to $348.64, making it the top gainer on the S&P 500. The electric vehicle maker’s stock popped after the company debuted its long-awaited Model Y robotaxi over the weekend to a limited group of testers in Austin, Texas.
CEO Elon Musk called the launch “successful” in a post on his social media platform X, though regulators said they would investigate a few incidents reported during the testing phase. Despite these concerns, investors remained enthusiastic about Tesla’s autonomous driving ambitions.
Other notable gainers included Arista Networks (+6.69%), Owens-Illinois (+6.53%), Advance Auto Parts (+5.10%), and Estée Lauder (+4.74%).
Hims & Hers Plunges After Novo Nordisk Ends Partnership
In corporate news, telehealth company Hims & Hers Health (HIMS) saw its stock plummet 34.63% after pharmaceutical giant Novo Nordisk announced it was ending their collaboration. The partnership had been viewed as a significant growth driver for Hims & Hers, particularly in the weight loss medication market.
Meanwhile, TD SYNNEX (SNX) reported stronger-than-expected quarterly results ahead of the market open, with revenue up 7.2% year-over-year to $14.95 billion and non-GAAP profit of $2.99 per share, exceeding analysts’ estimates by 10.1%.
Key Earnings and Economic Data on Tap
Investors are closely watching several high-profile earnings reports scheduled for release after the market close today. FedEx Corporation (FDX) will report its Q4 2025 results, with analysts expecting earnings per share of $5.84. Other notable companies reporting include AeroVironment (AVAV), Worthington Enterprises (WOR), and BlackBerry (BB).
Carnival Corporation (CCL) released its Q2 2025 earnings before the market opened, though results were not immediately available.
On the economic front, the State Employment and Unemployment report for May 2025 was released today at 10:00 AM ET, providing insights into regional labor market conditions. Later this week, investors will be watching for the American Time Use Survey and Productivity and Costs by Industry reports scheduled for Thursday.
Market Breadth Shows Strong Bullish Sentiment
Market breadth was decidedly positive, with advancers significantly outnumbering decliners across all major indexes. On the Dow Jones, 26 stocks advanced while only 4 declined. The Nasdaq saw 34 stocks move higher against just 5 declining, while the S&P 500 had 287 advancing stocks compared to 73 decliners.
The number of stocks hitting 52-week highs also exceeded those reaching 52-week lows, further indicating bullish market sentiment. The S&P 500 had 13 stocks reach new 52-week highs compared to 8 hitting new lows.
Looking Ahead: Fed Policy and Inflation Concerns
Despite today’s market gains, investors continue to monitor comments from Federal Reserve officials for clues about future interest rate policy. President Trump has repeatedly called for significant rate cuts, recently suggesting the Fed should lower rates by two and a half points.
Several Fed officials have recently joined the chorus supporting rate cuts, though the timing and magnitude remain uncertain. The markets today appear to be pricing in expectations for monetary easing in the coming months, which could provide additional support for equities.
As the week progresses, market news today suggests investors will remain focused on geopolitical developments in the Middle East, upcoming economic data releases, and the start of what promises to be an eventful earnings season. With the S&P 500 now trading above the 6,000 mark, market participants will be watching closely to see if this momentum can be sustained through the summer months.