US Markets Rally as Iran Tensions Ease, APA Boosts Distribution | ASX Mixed

Published: 24 June 2025 | By Tim Montague - Jones

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Wall Street Gains on “Weak” Iranian Retaliation and Rate Cut Signals

The S&P 500 and Nasdaq both gained 0.94%, while the Dow Jones rose 0.89%, following US airstrikes on Iranian nuclear sites over the weekend. Iran’s subsequent missile retaliation — targeting a US airbase in Qatar — was deliberately limited and caused no casualties. President Trump labelled the move “very weak”, easing fears of a broader military escalation.

Markets were further buoyed by dovish comments from Fed Governor Michelle Bowman, who indicated support for an interest rate cut at the Fed’s July meeting. Bowman highlighted subdued inflation and policy flexibility, offering investors fresh hope that rate relief could support economic momentum despite ongoing trade and geopolitical risks.

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Oil Prices Collapse Despite Middle East Volatility

Despite earlier concerns over potential supply disruptions, oil prices dropped sharply. Brent crude fell 8.8% to US$70.26 per barrel, while WTI declined 8.1% to US$67.88. The sharp retreat followed President Trump’s announcement of a tentative ceasefire agreement between Iran and Israel, expected to take effect immediately. Crude markets also responded to the fact that key infrastructure remained untouched, and the Strait of Hormuz remained open.

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ASX Edges Lower as Sector Rotation Continues

Back home, the ASX 200 closed 0.36% lower as investors weighed falling commodity prices and global headlines. Weakness in Materials, Information Technology, and Healthcare was partially offset by gains in Financials and Utilities.

Commodity prices were mixed, with Aluminium, Copper, and Zinc climbing, while Nickel declined. Iron ore edged 0.1% higher to US$94.77 per tonne.

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APA Group Lifts Final Distribution

Infrastructure giant APA Group (ASX: APA) announced an estimated final distribution of 30¢ per security, up 1.7% year-on-year. Combined with the interim 27¢ payment made in March, APA’s full-year FY25 distribution stands at 57¢, in line with company guidance. This news will be well received by income-focused investors looking for stable dividend-paying stocks in the ASX 200.

Collins Foods Profit Tumbles, But KFC Australia Shows Strength

Fast food operator Collins Foods (ASX: CKF) reported a 88.5% fall in net profit to $8.8 million, hurt by impairments in its KFC Netherlands business and wage provision increases. However, KFC Australia remains resilient, posting a 4.9% same-store sales increase in the first eight weeks of FY26.

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