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Indexes up: Dow 0.68%, S&P 500 0.75%, Nasdaq 1.05%

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FedEx ( FDX ) rises ahead of quarterly results

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Atlanta Fed chief says no rush to cut rates

(Updates after markets open)

By Kanchana Chakravarty and Nikhil Sharma

June 24 (Reuters) - U.S. stock indexes rose on Tuesday

as President Donald Trump's announcement of a ceasefire between

Israel and Iran helped calm investor fears of a broader conflict

in the oil-rich Middle East.

Financial and technology stocks led the rally among S&P

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

a nearly 5%

drop in crude prices

after the ceasefire announcement eased the threat

of Gulf oil supply disruptions.

Defense stocks Lockheed Martin ( LMT ) and RTX Corp ( RTX )

fell 1.7% and 2.5%.

Investors also assessed Federal Reserve Chair Jerome

Powell's comments on monetary policy, where he reiterated the

central bank's wait-and-watch approach to interest rates as

tariff-driven price pressures become evident.

Trump's call for a truce marked a sharp turnaround after the

U.S. bombed Iranian nuclear sites over the weekend and Iran

retaliated by firing missiles at a U.S. base in Qatar.

Despite reports of both Israel and Iran violating the

ceasefire through the day, investors have taken heart from the

de-escalation in hostilities.

At 10:20 a.m. ET, the Dow Jones Industrial Average

rose 288.65 points, or 0.68%, to 42,870.43, the S&P 500

gained 45.35 points, or 0.75%, to 6,070.52 and the Nasdaq

Composite gained 206.04 points, or 1.05%, to 19,837.01.

The benchmark S&P 500 index remains about 1.3% below

its all-time highs.

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.

"There's no question that Trump has put pressure to cut

interest rates. But I don't think Powell is going to budge,"

said Peter Cardillo, chief market economist at Spartan Capital

Securities.

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.

In contrast, Fed Vice Chair Michelle Bowman on Monday backed

the resumption of the policy easing cycle in July.

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.

An index tracking consumer confidence fell to 93 in June, a

Conference Board report showed. Economists polled by Reuters had

expected the index to stand at 100.

Focus later this week will be on the Commerce Department's

final take on first-quarter GDP and its Personal Consumption

Expenditures (PCE) data.

Among megacap stocks, Tesla shares lost 1.4%.

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

high. Coinbase Global ( COIN ) was up 7% and Strategy

advanced 2.6%.

Package delivery firm FedEx ( FDX ) edged up 0.6% ahead of

its quarterly results due after the closing bell.

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 83 new highs and 35 new

lows.

(Reporting by Kanchana Chakravarty in Bengaluru; Editing by

Devika Syamnath)