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Indexes up: Dow 1%, S&P 500 1%, Nasdaq 1.35%

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FedEx ( FDX ) rises ahead of quarterly results

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Atlanta Fed chief says no rush to cut rates

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US airlines rise on hopes of end to Israel-Iran conflict

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Broadcom ( AVGO ) hits record peak after brokerage upgrades

(Updates with afternoon trading levels)

By Kanchana Chakravarty and Nikhil Sharma

June 24 (Reuters) -

Wall Street's S&P 500 neared a record high on Tuesday as

President Donald Trump announced an Israel-Iran ceasefire and

Federal Reserve Chair Jerome Powell reiterated interest-rate

cuts can wait till the impact of tariffs becomes clearer.

The benchmark S&P 500 index and the Nasdaq were about

1.1% and 1.5% below their all-time highs, respectively.

Financial and technology stocks led the rally among S&P 500

sub-sectors, while energy stocks declined the most, tracking an

over 5% drop in crude prices after Trump's ceasefire

announcement eased the threat of Gulf oil supply disruptions.

Airline stocks rose, with American Airlines ( AAL ) up 4%

and Alaska Air Group ( ALK ) gaining 3.6%. Defense stocks

Lockheed Martin ( LMT ) and RTX Corp ( RTX ) fell 2.6% and 3.2%.

Global markets also rallied after Trump called for a halt to

hostilities in the Middle East, a sharp turnaround following the

U.S. bombing of Iranian nuclear sites over the weekend and

Iran's retaliation by firing missiles at a U.S. base in Qatar.

Hours after the ceasefire commenced, Israel acknowledged

striking a radar installation near Tehran in retaliation for

Iranian missile launches, but said it had refrained from further

attacks beyond that after Trump spoke with Prime Minister

Benjamin Netanyahu.

"I think that (ceasefire) gives the market relief, gives it

some confidence, and hope that this conflict or this war is not

going to be spreading," said Robert Pavlik, senior portfolio

manager at Dakota Wealth.

At 12:05 p.m. ET, the Dow Jones Industrial Average

rose 441.83 points, or 1.04%, to 43,023.61, the S&P 500

gained 59.27 points, or 0.98%, to 6,084.41 and the Nasdaq

Composite gained 265.88 points, or 1.35%, to 19,896.86.

Investors also assessed Fed Chair Powell's comments on

monetary policy during a congressional testimony, as he

emphasized the central bank's wait-and-watch approach to

interest rates as tariff-driven price pressures become evident.

Powell has been on the receiving end of Trump's criticisms

for not cutting interest rates, with the President hinting at

firing the top Fed policymaker or naming a successor soon.

Atlanta Fed President Raphael Bostic told Reuters the

central bank doesn't need to cut interest rates soon, as

companies plan to raise prices due to higher import taxes and

the job market is still strong.

The remarks were mirrored by Cleveland Fed President Beth

Hammack, who dismissed the need for immediate rate cuts, citing

uncertainty about the impact of trade tariffs on inflation,

which remains above the central bank's target.

Market participants are pricing in at least two

25-basis-point rate reductions before year-end, with the first

cut seen in September.

Several central bank officials, including Fed Board Governor

Michael Barr and Fed Minneapolis President Neel Kashkari, are

also scheduled to speak later in the day.

U.S. consumer confidence unexpectedly deteriorated in June

amid worries about business conditions and employment prospects

over the next six months.

Among megacap stocks, Tesla shares lost 1.4%.

Package delivery firm FedEx ( FDX ) edged up 1.1% ahead of

its quarterly results due after the closing bell.

Broadcom ( AVGO ) hit a record high, up 3.8%, after HSBC

raised the semiconductor manufacturer to "buy" from "hold".

Advancing issues outnumbered decliners by a 2.86-to-1 ratio

on the NYSE and by a 2.9-to-1 ratio on the Nasdaq.

The S&P 500 posted 18 new 52-week highs and no new lows

while the Nasdaq Composite recorded 95 new highs and 44 new

lows.

(Reporting by Kanchana Chakravarty in Bengaluru; Editing by

Devika Syamnath)