*

Fed Chair Powell reiterates "wait and see" approach to

rate

cuts, tariffs

*

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

*

Broadcom ( AVGO ) hits record peak after brokerage upgrades

(Updates to market close)

By Stephen Culp

NEW YORK, June 24 (Reuters) - U.S. stocks rallied more

than 1% on Tuesday as investors welcomed a fragile truce with

Israel and Iran while parsing Federal Reserve Chair Jerome

Powell's congressional testimony for clues regarding the U.S.

central bank's path forward.

All three major U.S. stock indexes closed with their second

straight session of solid gains following U.S. missile strikes

on Iran's uranium enrichment assets.

The benchmark S&P 500 grew within striking distance of its

all-time closing high reached on February 19.

Late Monday, U.S. President Donald Trump announced a

cease-fire agreement, which Israel appeared to have violated.

Still, investors viewed the cease-fire rhetoric as a sign of

de-escalating tensions.

"The bulls are out of their bucking shoots," said Greg

Bassuk, Chief Executive Officer at AXS Investments in New York.

"The cease-fire really adding fire to the stock market rally. We

believe investors are wagering that calm in the Middle East is

really a boon for stocks even as it weighs down bonds and oil

prices."

Crude prices slid on waning supply concerns related

to the conflict, dragging energy shares lower.

Powell, speaking before the U.S. House of Representatives

Financial Services Committee, reiterated his view that rate cuts

can wait until the economic effects of tariff increases are

better known, adding "we are well positioned to wait to learn

more about the likely course of the economy before considering

any adjustments to our policy stance."

Financial markets have been pricing in a more than 20%

likelihood that the Fed will lower its key interest rate at the

conclusion of its July policy meeting, and a near 70%

probability that its first rate cut will land in September.

On the economic front, consumer confidence deteriorated this

month, with pessimism toward the jobs market falling to its

lowest level since March 2021.

"Consumer confidence was down," Bassuk added. "And as we see

these economic data points casting a shadow over the strength of

the U.S. economy, it's another factor pointing toward greater

likelihood of Fed rate cuts this year."

The Commerce Department is expected to release its final

take on first-quarter GDP on Thursday, and on Friday its closely

watched Personal Consumption Expenditures (PCE) report will shed

light on inflation, consumer spending and income growth.

According to preliminary data, the S&P 500

gained 67.34 points, or 1.12%, to end at 6,092.51 points,

while the Nasdaq Composite gained 283.62 points, or

1.45%, to 19,914.59. The Dow Jones Industrial Average

rose 510.19 points, or 1.20%, to 43,091.97.

Among the "magnificent seven" group of megacap stocks, Tesla

underperformed.

Airline stocks gained altitude amid cooling Middle East

tensions.

But defense stocks lost ground. Lockheed Martin ( LMT ) and

RTX Corp ( RTX ) both closed lower.

Shares of crypto companies Coinbase Global ( COIN ) and

MicroStrategy ( MSTR ) rose after bitcoin hit a one-week high.

Broadcom ( AVGO ) touched a record high after HSBC raised

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

Package delivery firm FedEx ( FDX ) is expected to report

quarterly results after the closing bell.