*

Indexes up: Dow 1.21%, S&P 500 1.19%, Nasdaq 1.56%

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FedEx ( FDX ) rises ahead of quarterly results

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Fed Chair Powell reiterates "wait and see" approach to

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 to afternoon)

By Stephen Culp

NEW YORK, June 24 (Reuters) -

Wall Street advanced 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 were on track for their

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

strikes on Iran's uranium enrichment assets.

The benchmark S&P 500 was less than 1% below 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 market has learned very precisely over the last

generation that any time there's a geopolitical flare-up in

the Middle East that affects U.S. financial markets, those

effects will be short-lived," said Scott Ladner, chief

investment officer at Horizon in Charlotte, North Carolina.

"The cease-fire is just cementing that view," Ladner added.

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 upcoming July policy meeting, and a near 70%

probability that its first rate cut will land in September.

"We think September's very likely and we think while July is

not a zero probability event, it's definitely a long shot,"

Ladner said.

On the economic front, Consumer Confidence deteriorated this

month, with pessimism toward the jobs market falling to its

lowest level since March 2021.

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.

The Dow Jones Industrial Average rose 513.96 points,

or 1.21%, to 43,095.74, the S&P 500 gained 71.64 points,

or 1.19%, to 6,096.94 and the Nasdaq Composite

gained 305.28 points, or 1.56%, to 19,936.25.

Among the 11 major sectors of the S&P 500, Tech shares

led the gainers, while energy stocks were the

sole decliners.

Among megacap stocks, Tesla shares shed 2.0%.

Airline stocks gained altitude amid cooling Middle East

tensions. The S&P 1500 Airlines index advanced 2.3%.

But defense stocks lost ground, with Lockheed Martin ( LMT ) and

RTX Corp ( RTX ) both off about 2.9%.

Shares of crypto companies rose after bitcoin hit a one-week

high. Coinbase Global ( COIN ) and Strategy advanced

11.7% and 3.8% respectively.

Broadcom ( AVGO ) touched a record high, after HSBC raised

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

was last up 3.4%.

Package delivery firm FedEx ( FDX ) is expected to report

quarterly results after the closing bell.

Advancing issues outnumbered decliners by a 3.38-to-1 ratio

on the NYSE. There were 195 new highs and 49 new lows on the

NYSE.

On the Nasdaq, 3,430 stocks rose and 1,007 fell as advancing

issues outnumbered decliners by a 3.41-to-1 ratio.

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

while the Nasdaq Composite recorded 109 new highs and 49 new

lows.