The S&P 500 and Nasdaq just hit new record highs. Investors cheered strong tech momentum, hopes of U.S. Fed rate cuts, and progress in trade talks. Wall Street wrapped up the week with big wins, despite late jitters from tensions with Canada.
The S&P 500 closed at 6,173.07, up 0.52%, while the Nasdaq jumped to 20,273.46, also gaining 0.52%. The Dow Jones surged 432 points, but still sits 2.7% below its all-time high.
What’s Driving the Rally?
Trade optimism is back. A fresh agreement between Washington and Beijing will fast-track rare-earth shipments to the U.S., a key win before July’s tariff deadline. Meanwhile, the U.S. Treasury Secretary hinted that deals with 18 major partners could wrap by September.
But not all is smooth. President Trump abruptly ended talks with Canada over its digital tax on tech giants. Still, the momentum kept rolling.
The Fed Factor: Rate Cuts on the Table
Economic data gave more hope to bulls. A report showed consumer income and spending dropped in May, boosting bets that the Federal Reserve may cut rates to support the economy.
Markets now price in a 76% chance of a rate cut in September, and a 19% chance one comes even earlier in July, according to the CME FedWatch tool.
Also Read Trump Halts Trade Talks, Slams Canada Over $2B Tech Tax on U.S. Firms
AI and Tech Stocks Keep Leading
AI stocks are still the stars. Micron’s strong forecast lifted investor confidence. Nvidia rose another 1.8%, inching closer to a staggering $4 trillion valuation. The tech rally helped the Nasdaq confirm it’s officially in a bull market—up over 20% from its April lows.
Nike also made waves, jumping 15.2% after a surprisingly solid earnings outlook.
Winners, Losers, and Market Sentiment
Consumer discretionary led the way among the S&P 500 sectors. Energy stocks lagged. On the NYSE, advancers outpaced decliners 1.29 to 1. The Nasdaq saw a tighter race, with more losers than winners by a 1.11 to 1 ratio.
Still, with over 22 billion shares traded, volume beat the recent average.
Investors are chasing gains and don’t want to miss out. As Horizon Investment’s CEO Chuck Carlson put it, “They don’t want to get caught on the wrong side of this thing.” With record highs, trade progress, and rate cuts in play, the market is charging ahead.
Also Read Dollar Near 3.5-Year Low as Traders Anticipate More US Rate Cuts
