04:57 PM EDT, 06/24/2025 (MT Newswires) -- Equities rallied Tuesday, while oil prices retreated as markets responded to a US-brokered ceasefire between Israel and Iran.

The Nasdaq Composite closed 1.4% higher at 19,912.5, while the Dow Jones Industrial Average rose 1.2% to 43,089. The S&P 500 climbed 1.1% to 6,092.2. Most sectors ended in the green, led by technology.

"We believe new highs for the markets and tech sector could be on the horizon this summer with this Iran situation now likely settling into a calmer negotiation stage," Wedbush Securities analyst Daniel Ives said in a note. "There will still be headline risk and some back and forth, but ultimately tech investors have gotten a bullish 'one-two punch' of news over the last 48 hours."

West Texas Intermediate crude oil was down 5.2% at $64.97 a barrel following a sharp decline in the previous session.

"In the last 24 hours, the geopolitical landscape has shifted dramatically -- removing a supply risk premium that had built over the previous 12 days," Saxo Bank Head of Commodity Strategy Ole Hansen said.

Both Iran and Israel have accused each other of violating the ceasefire.

Investors also followed Federal Reserve Chair Jerome Powell's latest remarks that the Federal Open Market Committee is "well positioned to wait to learn more about the likely course" of the economy before considering any monetary policy adjustments.

The US economy is in a "solid position" despite elevated uncertainty, while the unemployment rate remains low, Powell said in prepared remarks to the House Committee on Financial Services.

Powell is scheduled to testify before the Senate Committee on Banking, Housing, and Urban Affairs Wednesday as a part of his semi-annual testimony to Congress.

Cleveland Fed President Beth Hammack said Tuesday she doesn't see a weakening in the economy that would merit "imminent" policy easing.

"When clarity is hard to come by, waiting for additional data will help inform the path ahead," Hammack said. "It may well be the case that policy remains on hold for quite some time before the committee initiates very modest cuts to return policy to a neutral setting."

Separately, New York Fed President John Williams said he expects the tariffs enacted this year to increase inflation to about 3% in 2025. Over the next two years, inflation is likely to gradually drop to 2% as the effects of tariffs fade, he said.

US Treasury yields were mixed, with the 10-year rate falling 2.6 basis points to 4.3% and the two-year rate little changed at 3.82%.

In economic news, US consumer confidence unexpectedly fell in June as views on current and future conditions deteriorated amid uncertainty around the effects of tariffs, the Conference Board said.

US home prices fell sequentially in April, while the annual growth rate was the slowest in nearly two years, S&P Global ( SPGI ) division S&P Dow Jones Indices said.

Separately, the Federal Housing Finance Agency said home prices dropped 0.4% in April on a seasonally adjusted basis, compared with March's upwardly revised flat print.

Manufacturing contraction in the US Mid-Atlantic region unexpectedly improved in June as shipments and new orders rose but remained in negative territory, data from the Federal Reserve Bank of Richmond showed Tuesday.

In company news, Uber Technologies ( UBER ) said it is launching autonomous ride-hailing services in Atlanta in partnership with Alphabet's (GOOG, GOOGL) Waymo. Uber ( UBER ) shares were up 7.5%, among the top gainers on the S&P 500, while Alphabet's class A and C shares rose 1% each.

PepsiCo ( PEP ) said it plans to deploy Salesforce's ( CRM ) digital labor platform Agentforce into its field operations. Salesforce ( CRM ) shares rose 3%, the best performer on the Dow, while PepsiCo ( PEP ) advanced 1.5%.

Gold was down 1.7% at $3,337 per troy ounce, while silver lost 0.9% to $35.86 per ounce.