Dow Jones Surges 100 Points as Fed Walks Tightrope Amid Iran Tensions

Markets shrug off geopolitical chaos—again.

Wall Street's resilience on display as the Dow Jones Industrial Average climbs triple digits despite Middle East turmoil. The Federal Reserve's delicate balancing act keeps traders bullish, proving once more that money flows where stability is promised—even when the world burns.

Fed plays firefighter with monetary policy.

While Tehran rattles sabers, Jerome Powell & Co. execute their trademark 'whatever it takes' approach. No explicit rate cuts or stimulus announced—just the usual kabuki theater of measured statements and strategic pauses. Somehow, it works. Every. Single. Time.

Bonus cynicism: Nothing fuels equities like the sweet smell of other people's risk.

Traders’ attention was divided between multiple global and domestic events. Markets welcomed a temporary halt in the escalation between the U.S. and Iran. U.S. President Donald TRUMP stated that he would decide in two weeks whether to enter the Israel-Iran conflict.

While the statement introduced fresh uncertainty, it also opened the door to potential diplomatic engagement. However, Trump has so far remained inflexible on negotiations with Iran, demanding the complete dismantling of the country’s nuclear program.

Fed governor suggests rate cuts in July

On the macroeconomic front, Federal Reserve Governor Christopher Waller suggested the Fed might cut interest rates as early as July. He stated that he does not expect tariffs to significantly increase inflation, potentially allowing for monetary policy easing. However, the decision WOULD require consensus from the full Federal Open Market Committee.

Trump, who appointed Waller during his first term, has continued to pressure the Fed to lower rates. He has repeatedly criticized Fed Chair Jerome Powell, calling him “stupid” and the “worst”. Still, the Fed retains its independence, and Trump ruled out firing Powell.

In trade news, the U.S. has informed semiconductor manufacturers that they will no longer be allowed to use American technology in their Chinese plants. The MOVE is part of an ongoing effort to curb China’s access to advanced semiconductors, which the U.S. considers a key strategic resource.