Open Higher as Trump Weighs Iran Strategy, Fed Signals Possible Rate Cut

U.S. stocks opened higher Friday as geopolitical tensions and monetary policy developments grabbed investor attention. President Donald Trump indicated he is still considering whether to join Israel in military action against Iran, while Federal Reserve Governor Christopher Waller hinted that an interest rate cut could come as early as next month.White House spokeswoman Karoline Leavitt said Trump will make a decision on Iran within two weeks. However, he is currently prioritizing diplomacy. Iran, on the other hand, has declared that it won’t engage in talks with the U.S. unless Israeli attacks cease.Iranian President Masoud Pezeshkian reiterated on X (formerly Twitter) that the only path to peace is for the “enemy’s aggression” to end unconditionally.Despite hopes for a diplomatic solution, U.S. officials are reportedly preparing for the possibility of a weekend strike on Iran, Bloomberg reported, citing anonymous sources.Markets Respond to Fed Rate Cut HintsMarkets were further buoyed by Fed Governor Waller’s comments on CNBC suggesting that rate cuts could start as soon as July. Lower interest rates tend to support stock prices by reducing borrowing costs and encouraging investment.At 9:32 a.m. ET:Dow Jones Industrial Average rose 0.33% (138.59 points) to 42,310.25S&P 500 gained 0.40% (24.11 points) to 6,004.98Nasdaq Composite added 0.57% (111.79 points) to 19,658.0610-year Treasury yield increased to 4.415%Oil prices held steady at $75.14 per barrelTrump Criticizes Fed Chair Powell AgainTrump renewed his criticism of Federal Reserve Chair Jerome Powell, calling him “destructive” for holding interest rates steady. Trump argued that Powell’s stance is costing the U.S. “hundreds of billions of dollars” in higher debt financing.Meanwhile, Waller expressed confidence that potential tariffs are unlikely to spur significant inflation and advocated for immediate rate cuts: “I think we’re in a position where we could do this—and as early as July.”Corporate HeadlinesCarMax beat earnings expectations; shares rose 5%.Darden Restaurants exceeded forecasts and issued a strong 2026 outlook, but shares dipped 1%.Accenture topped revenue estimates, but bookings declined for the second quarter in a row; shares dropped 7.5%.Microsoft plans to lay off several thousand employees; shares were slightly higher.Smith & Wesson missed forecasts and reported falling profits, citing steel tariffs as a concern; shares sank over 15%.GMS, a specialty building products firm, received buyout offers from QXO ($95.20/share) and Home Depot. GMS shares surged nearly 28%.Cryptocurrency UpdateHackers reportedly linked to Israel stole over $90 million from Iran’s largest crypto exchange, Nobitex, according to blockchain analytics firms. Bitcoin was trading up 1.23%, at $105,956.80.