Mobileye (MBLY 11.28%) stock closed out Monday's trading with double-digit gains thanks to a pair of geopolitical and macroeconomic catalysts. The company's share price climbed 11.6% in a daily session that saw the S&P 500 and the Nasdaq Composite each gain 0.9%.
Investors bid up Mobileye stocks after Iran's retaliatory missile strikes on U.S. bases in Iraq and Qatar actually suggested a path for military activity to deescalate. Adding another bullish catalyst, a member of the Federal Reserve made comments suggesting that it's still possible that the central banking authority could lower interest rates next month.
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Mobileye stock rises following Iran's retaliatory moves
Over the weekend, the U.S. dropped bombs on Iranian nuclear development facilities. The strike raised concerns that military activity could escalate in the Middle East and that Iranian allies including Russia and China could get involved directly or indirectly.
The market wavered today after it was announced that Iran had carried out missile strikes on U.S. bases in Qatar and Iraq, but stocks moved higher after details about the strikes became available. Iran's retaliatory strikes appear to have been largely symbolic and designed to minimize potential damages. U.S. officials had been given advanced notice of the strikes, and no casualties have been reported so far.
As a company that's headquartered in Israel, Mobileye could face substantial challenges if geopolitical stability worsens in the Middle East. Following Iran's strikes, President Donald Trump called for an end to the war between Israel and Iran. With signs that military activity may be deescalating, Mobileye stock surged higher today.
Is the Fed gearing up to cut rates next month?
Earlier today, Federal Reserve Vice Chair for Financial Supervision Michelle Bowman made comments in support of cutting interest rates. While Fed Chair Jerome Powell and other officials have been hesitant to cut rates before the picture is clearer on inflation and the impact of new tariffs, Bowman suggested that the macroeconomic environment was better suited for a rate cut than many had previously anticipated.
The Federal Reserve is set to meet next month, and Bowman's comments in support of a rate cut at the meeting helped power gains for the stock market today. If the Fed does serve up a rate cut, it could help power a rally for Mobileye and other growth stocks.
