Pre-Market Pulse 24th June – Stocks spike higher as Trump Describes Iranian response as “weak”

Overnight – Stocks spike higher as Trump Describes Iranianresponse as “weak”

Stocks gained solidly on Monday, despitevolatile trading, as Iran released a "very weak" response to the U.S.strikes on three Iranian nuclear sites over the weekend. Additionally, dovishinterest rate commentary from Federal Reserve Governor Michelle Bowmancontributed to the bid in stocks.

Shortly before 1 PMET, Iran launched missile attacks on the U.S. airbase in Qatar, reportedlycoordinating with Qatari officials to provide advance notice and minimizecasualties. No deaths were reported, and most of the 14 missiles wereintercepted, with only one allowed to proceed as it posed no threat. PresidentTrump characterized Iran’s response as “very weak,” thanked Iran for thewarning, and expressed hope for regional peace, while U.S. military bases inthe region remained on high alert.

Amid these heightenedtensions, Iranian sources suggested the country might consider blocking theStrait of Hormuz, a critical route for global oil shipments, though oil pricesunexpectedly plunged as fears of further escalation eased. Analysts noted thatthe recent exchange reduced uncertainty about potential U.S. retaliation,possibly providing some stability to the situation. President Trump publiclyencouraged restraint and called for peace, while also urging Israel to pursueharmony in the region.

On the economic front,Federal Reserve Governor Michelle Bowman indicated support for a July interestrate cut, citing contained inflation and the temporary impact of Trump’s tariffpolicies. Despite Middle East turmoil, oil prices fell sharply, with Brentcrude dropping 7.5% and West Texas Intermediate down 8.1%, erasing earliergains. Trump took to social media to urge both countries and companies to keepoil prices low and pressed the U.S. Department of Energy to ramp up domesticdrilling.