Stock Market Today: S&P 500 rises on ’weak’ Iran counterattack, rate cut hopes

Published 23-06-2025, 05:44 am
Updated 24-06-2025, 01:46 am

Investing.com - U.S. stocks gained solidly on Monday, despite volatile trading, as Iran released a "very weak" response to the U.S. strikes on three Iranian nuclear sites over the weekend. Additionally, dovish interest rate commentary from Federal Reserve Governor Michelle Bowman contributed to the bid in stocks.

The benchmark S&P 500 closed up by 56 points, or 0.94%, the tech-heavy Nasdaq Composite lifted by 184 points, or 0.94%, and the 30-stock Dow Jones Industrial Average rose 375 points, or 0.89%.

Shortly before 1 PM ET, Tehran launched missile attacks at the U.S. airbase in Qatar.  Iran reportedly coordinated the attack with Qatari officials, giving advanced notice to minimize casualties. Qatar reported no deaths from the attack. Other U.S. military bases in the region are on high alert.

Following the counterattack, Trump called the response from Iran "very weak."

"There have been 14 missiles fired — 13 were knocked down, and 1 was “set free,” because it was headed in a nonthreatening direction," Trump said. "I am pleased to report that NO Americans were harmed, and hardly any damage was done. Most importantly, they’ve gotten it all out of their “system,” and there will, hopefully, be no further HATE. I want to thank Iran for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured. Perhaps Iran can now proceed to Peace and Harmony (JO:HARJ) in the Region, and I will enthusiastically encourage Israel to do the same."

In addition to the missile launch, reports in Iran have suggested that the country is mulling blocking the Strait of Hormuz, a key artery for global oil and gas supplies being sent around the world from the Middle East.  However, despite the warning, oil prices plunged as a further escalation of the conflict between the U.S. and Iran appears contained.

Some analysts have argued that although tensions in the Middle East have now intensified, the strikes have removed at least one shroud of uncertainty around whether Trump would move to strike Iran.

"With the overhang of uncertainty lifted somewhat, the weekend events could wind up being a net positive," analysts at Vital Knowledge said in a note to clients.

Fed’s Bowman backs July rate cut

Fed Governor Michelle Bowman has stated that she would support an interest rate reduction at the central bank’s next policy meeting in July.

Speaking in Prague, Bowman predicted that Trump’s sweeping tariff agenda would have only a temporary effect on inflationary pressures in the United States.

Bowman added that, should price gains continue to be contained as they have in recent months, she would "support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting."

Several Fed officials are set to speak in the coming days, most notably Chair Jerome Powell, who will deliver two days of testimony before Congress starting on Tuesday. 

Powell said last week that the central bank remained unconvinced of the case for more near-term interest rate cuts, as Trump’s duties continued to cloud over the wider economic outlook. 

Oil falls sharply

Despite concerns that turmoil in the Middle East would continue to drive oil prices higher, especially given Iran’s saber-rattling related to the Strait of Hormuz, crude oil traded sharply lower today.

Brent crude futures for August had fallen 7.5% to $69.82 per barrel by 4 PM ET on Monday, and West Texas Intermediate crude futures had slipped by 8.1% to $67.88 a barrel. Both contracts erased large overnight gains.

President Trump urged countries and companies to keep oil prices low. "Everyone, keep oil prices down, I’m watching! You’re playing into the hands of the enemy, don’t do it," Trump wrote in all capital letters on his Truth Social platform. 

In a follow-up post directed at the U.S. Department of Energy, Trump urged, "drill, baby, drill" and added, "I mean now."

(Ambar Warrick and Scott Kanowsky contributed reporting.)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.