Wall Street rises as Dow jumps over 500 points

US stocks closed higher at the end of the week’s second trading session, as investor sentiment toward risk assets improved following US President Donald Trump’s announcement of a ceasefire between Iran and Israel. The ceasefire comes after a sudden 12-day conflict that had threatened to destabilize global energy markets.

The Dow Jones Industrial Average rose by 1.19%, or 507 points, to 43,089 points at the close, extending its year-to-date gains to 1.28%.

The S&P 500, a broader market index, increased by 1.11%, or 67 points, to 6,092 points, while the Nasdaq Composite rose 1.43%, or 281 points, to 19,912 points.

The Nasdaq 100—which includes the 100 largest non-financial companies listed on the Nasdaq—climbed 1.53%, or 334 points, to close at 22,190 points, marking a new all-time high.

In Europe, the Stoxx Europe 600 index gained 1.11% to close at 540 points, despite a weak performance from oil and gas-related stocks.

While the UK’s FTSE 100 index remained flat at 8,758 points, Germany’s DAX rose 1.60% to 23,641 points, and France’s CAC 40 increased 1% to 7,615 points.

In Japan, the Nikkei 225 advanced 1.15% to 38,790 points, and the broader Topix index climbed 0.75% to 2,781 points, with both indices posting gains for the first time in four sessions.

In energy markets, Brent crude futures for August delivery dropped by 6%, or $4.31, to settle at $67.18 per barrel.

Meanwhile, WTI (Nymex) crude futures for August delivery declined by 6%, or $4.14, to $64.37 per barrel.

As for gold, August futures for the yellow metal fell by 1.80%, or $61.1, to close at $3,333.90 per ounce.

Trump earlier announced a ceasefire between Israel and Iran. Although he later condemned Tel Aviv for violating the agreement just hours after its announcement, the situation has remained stable thus far.

Federal Reserve Chair Jerome Powell, in testimony before the House of Representatives, stated that inflation has declined over the past few years but remains above the 2% target. He emphasized the need to maintain a cautious approach and not rush into further interest rate cuts, particularly given the ongoing uncertainty surrounding the full impact of tariffs.