Investing.com-- U.S. stock futures rose on Monday evening after Wall Street closed modestly higher, as President Donald Trump announced that Israel and Iran had agreed to a ceasefire to end what he described as “THE 12 DAY WAR.”

Furthermore, Federal Reserve Governor Michelle Bowman’s dovish comments on interest rates helped support gains in the stock market.

S&P 500 Futures rose 0.6% to 6,110.20 points, while Nasdaq 100 Futures advanced 0.8% to 22,238.75 points by 20:14 ET (00:10 GMT). Dow Jones Futures were trading 0.4% higher at 43,081.0 points.

Wall St ends higher on Israel-Iran ceasefire; Tesla surges

Writing on his Truth Social platform late Monday, President Trump described a multi‑stage ceasefire beginning within six hours of his post.

He explained that Iran would initiate a 12‑hour pause, followed by Israel, culminating in a formal end to hostilities 24 hours later.

The announcement comes days after the U.S. bombing of three Iranian nuclear sites.

Tehran on Monday launched missile attacks at the U.S. airbase in Qatar.  Qatar reported no deaths from the attack. Other U.S. military bases in the region were on high alert.

Following the counterattack, Trump called the response from Iran "very weak."

In the regular trading session on Monday, the S&P 500 index jumped 1%, while the NASDAQ Composite and the Dow Jones Industrial Average closed 0.9% higher, each.

Gains in Nasdaq were led by a more than 8% surge in Tesla Inc (NASDAQ: TSLA ) shares, after the company officially launched its long-awaited Robotaxi service in Austin, Texas

Fed’s Bowman backs cut in July; Powell’s testimony on tap

Adding to the positive sentiment, Federal Reserve Governor Michelle Bowman signaled a shift toward dovish policy, stating that a U.S. interest rate cut should be on the table at July’s meeting if inflation and labor‑market conditions remain favorable.

Speaking in Prague, Bowman predicted that Trump’s sweeping tariff agenda would have only a temporary effect on inflationary pressures in the U.S.

Several Fed officials are set to speak in the coming days, most notably Chair Jerome Powell, who will deliver two days of testimony before Congress starting on Tuesday.