12:34 PM EDT, 06/23/2025 (MT Newswires) -- US equity indexes rose as a surge in Tesla's (TSLA) shares lifted consumer discretionary, and talk of interest-rate cuts and strikes on Iran's nuclear facilities by the United States drove government bond yields sharply lower.

The Nasdaq Composite rose 0.6% to 19,564.1, the S&P 500 was up 0.5% to 5,998.2, and the Dow Jones Industrial Average traded 0.3% higher at 42,324.5. All sectors except energy advanced intraday, with real estate among the top gainers.

Tesla (TSLA) started offering rides in Robotaxis on Sunday in Texas, with Wedbush Securities analyst Daniel Ives saying the trips exceeded his expectations from the carmaker. The firm and its chief executive, Elon Musk, unveiled over the weekend the Robotaxi launch on the social media platform X. Shares of Tesla jumped 9.9% intraday, the top performer on the S&P 500 and the Nasdaq.

If conditions are appropriate, the Federal Open Market Committee could consider reducing interest rates as soon as its next meeting in July, Federal Reserve Vice Chair for Supervision Michelle Bowman said Monday at a research conference sponsored by the International Journal of Central Banking and the Czech National Bank. "As we think about the path forward, it is time to consider adjusting the policy rate."

Fed "Governor [Christopher] Waller recently sounded open to a July cut, dismissive of inflation effects from tariffs, and (perhaps) prematurely declared there is no tariff effect showing up in inflation data," Derek Holt, head of capital market economics, said in a note late Friday.

While Waller "is a respected official, it merits noting that his dovish stance is compatible with President Trump's views and that the President must choose a successor to Powell before the Chair's term is up next May," Holt said.

Many short- and long-term risks are still associated with the US-Iran-Israel conflict, even though Monday morning was relatively calm, Thierry Wizman, global foreign exchange and rates strategist at Macquarie Group, said in a note Monday.

Most US Treasury yields dropped, with the 10-year slumping 5.5 basis points to 4.32% and the two-year rate sliding 7.1 basis points to 3.83%.

West Texas Intermediate crude oil futures fell 1% to $73.03 a barrel.