The Globe and Mail reports in its Tuesday edition that stocks rose on Monday, driven by expectations that the U.S. Federal Reserve may cut interest rates as early as July, despite turmoil in the Middle East. A Reuters dispatch to The Globe reports that all three major U.S. stock indexes closed sharply higher, while Canada's main index also rose, although oil prices fell. InfraCap's Jay Hatfield noted the market's rally is unexpected for this time of year, indicating a bullish sentiment. Fed vice-chair Michelle Bowman mentioned the need to consider adjusting policy rates due to job market risks. Financial markets anticipate at least two 25-basis-point rate cuts by year-end, with the first in September. In the Middle East, Israel continued its actions against Iran, but oil prices dropped as Iran's retaliation did not threaten oil shipping routes through the Strait of Hormuz. Tehran warns it could close the Strait of Hormuz, a crucial oil shipping route. Murphy & Sylvest adviser Paul Nolt said: "The markets are reading this as 'hey, we're successful,' we took out their nuclear capabilities and we were able to support any counter-strikes. I think there was a lot of concern that Iran would do much more than it did."