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By Megan Leonhardt | Tuesday, June 24 Peace Pays. Stocks rallied as Middle East tensions cooled and oil prices continued to fall. The tech-heavy Nasdaq Composite gained 1.4%, while the Dow Jones Industrial Average rallied 507 points, or 1.2%. The S&P 500 closed up 1.1% to move within 1% of its Feb. 19 record. "Peace in the Middle East, at least for now, has market participants rejoicing while they aggressively scoop up stocks and Treasuries," writes José Torres, senior economist at Interactive Brokers. "The geopolitical premium is plunging, as crude oil and gold prices dive on a reduced need for safe-haven assets." In fact, the Israel-Iran cease-fire that President Donald Trump announced has sent oil back to pre-conflict levels. Brent crude oil futures, which acts as the global benchmark, fell 6.1% to $67.14 a barrel. That's the lowest level since June 10. Futures of WTI crude, which is seen as a benchmark for the U.S. market, fell 6% to $64.37. With the cease-fire agreement holding for now, attention is likely to turn back to tariffs in the coming days. The news may be less positive on that front in the short-term. There's currently a 90-day pause on Trump's so-called reciprocal tariffs, which are set to expire on July 9. European Union officials have floated potential retaliation if tariffs are implemented, including against Boeing aircraft, Stephane Sejourne, executive vice-president of the European Commission for Prosperity and Industrial Strategy, told Bloomberg. Trump officials have indicated that they expect trade deals to come after passing the tax and spending megabill that's now pending in the Senate. 
DJIA: +1.19% to 43,089.02 The Hot Stock: Coinbase Global +12.1% Best Sector: Technology 1.8% 
Powell Still Practicing PatienceFederal Reserve Chair Jerome Powell was on Capitol Hill on Tuesday for his semiannual report to Congress. My colleague Nicole Goodkind followed today's House hearing and will be tuning in for tomorrow's Senate version, as well. The hearing was largely uneventful, with Powell refusing to commit to any specific timeline for cuts. But Nicole said his comments reinforced market expectations that September is the earliest likely window. As she points out:
Powell didn’t rule out lowering interest rates at the central bank’s July policy meeting, but he also didn't echo the recent remarks from Fed Governors Michelle Bowman and Christopher Waller that cuts could make sense as soon as July. “I would say this, I think if it turns out that inflation pressures do remain contained then we will get to a place where we cut rates sooner rather than later but I wouldn't point to a particular meeting,” Powell said. Instead, he reiterated “for the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.” J.P. Morgan Chief Economist Michael Feroli noted that the "dovish turn" by Waller and Bowman following the June meeting seems to be restricted to those two policymakers for now. New York Fed President John Williams also spoke today, and he seemed to be on the same wavelength as Powell. Williams also felt that the Fed's current policy is appropriate, as it provides policymakers with time to "closely analyze incoming data.” 
The CalendarGeneral Mills, Jefferies Financial Group, Micron, and Paychex report earnings tomorrow. The Census Bureau reports new home sales for May. The consensus call is for a seasonally adjusted annual rate of 691,000 new single-family homes sold, 52,0000 fewer than in April. 
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