US Stocks Near All-Time High on Ceasefire, Oil Price Drop

U.S. stock markets have rebounded strongly in 2025, with the S&P 500 and Nasdaq indices closing near their all-time highs, driven by easing geopolitical tensions and falling oil prices. The recent US-brokered ceasefire between Israel and Iran has alleviated fears of disruptions to the global oil supply, causing crude prices to drop about 6%, which in turn has boosted investor sentiment and expectations that the Federal Reserve may have room to cut interest rates. The Dow, S&P 500, and Nasdaq all posted gains above 1%, with tech stocks and semiconductor companies leading the rally. Despite minor flare-ups, investor optimism remains high as markets recover from steep losses earlier in the year, with the S&P 500 up more than 3.5% year-to-date after rebounding from correction territory. However, some caution remains, as investors monitor U.S. job data and Treasury yields, which could influence the market's upward momentum. Federal Reserve Chair Jerome Powell has signaled a cautious stance, suggesting the central bank is not rushing to adjust rates but is open to cuts if economic conditions warrant.