Fed Chair Jerome Powell’s testimony to Congress also was in focus, as the Fed chair said the central bank could afford to “wait” on rate cuts while also saying that further signs of “contained” inflation could prompt cuts “sooner rather than later.”

The Dow Jones Industrial Average (^DJI) popped about 1%, or roughly 400 points, while the S&P 500 (^GSPC) also added around 1%. The tech-heavy Nasdaq Composite (^IXIC) led the advance, gaining about 1.4%.

A relief rally has been building amid hopes for a lasting end to the 12-day-old Middle East conflict, which has spooked markets with its risks of squeezed oil supply and escalation into full-blown war. On Monday, US stocks rose as Iran’s response to US attacks signaled a desire to deescalate tensions.

On Tuesday, President Trump said that the pause in hostilities had begun. Meanwhile, Israel confirmed it had agreed to a truce brokered by the US and announced by Trump late on Monday.

But just hours later, Israel accused Iran of breaching the ceasefire. Trump lashed out at both sides, though the fragile truce ultimately appeared to hold up for now.

Oil prices continued a descent as the prospect of a lasting truce eased worries about disruption to the supply of crude, centered on the risk that Iran would block the key Strait of Hormuz conduit for tankers. Brent (BZ=F) and West Texas Intermediate (CL=F) futures both moved toward levels seen before the outbreak of the conflict.

Meanwhile, Powell’s testimony before the House Financial Services Committee came as Trump turns up the pressure on the Federal Reserve chair to cut interest rates.

In prepared remarks, Powell reiterated his stance that the central bank can afford to hold interest rates steady for now, saying, “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.”

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Fed Chair Jerome Powell’s testimony to Congress also was in focus, as the Fed chair said the central bank could afford to “wait” on rate cuts while also saying that further signs of “contained” inflation could prompt cuts “sooner rather than later.”

The Dow Jones Industrial Average (^DJI) popped about 1%, or roughly 400 points, while the S&P 500 (^GSPC) also added around 1%. The tech-heavy Nasdaq Composite (^IXIC) led the advance, gaining about 1.4%.

A relief rally has been building amid hopes for a lasting end to the 12-day-old Middle East conflict, which has spooked markets with its risks of squeezed oil supply and escalation into full-blown war. On Monday, US stocks rose as Iran’s response to US attacks signaled a desire to deescalate tensions.

On Tuesday, President Trump said that the pause in hostilities had begun. Meanwhile, Israel confirmed it had agreed to a truce brokered by the US and announced by Trump late on Monday.

But just hours later, Israel accused Iran of breaching the ceasefire. Trump lashed out at both sides, though the fragile truce ultimately appeared to hold up for now.

Oil prices continued a descent as the prospect of a lasting truce eased worries about disruption to the supply of crude, centered on the risk that Iran would block the key Strait of Hormuz conduit for tankers. Brent (BZ=F) and West Texas Intermediate (CL=F) futures both moved toward levels seen before the outbreak of the conflict.

Meanwhile, Powell’s testimony before the House Financial Services Committee came as Trump turns up the pressure on the Federal Reserve chair to cut interest rates.

In prepared remarks, Powell reiterated his stance that the central bank can afford to hold interest rates steady for now, saying, “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.”

LIVE

12 updates