Wall Street Reaches New Peaks: S&P 500, Dow, and Nasdaq Hit Record Closes
Major U.S. stock indexes powered to fresh records on Friday, with the S&P 500 climbing to a new all-time high despite renewed jitters surrounding international trade policy. The broad market index’s ascent marks a significant recovery from the lows experienced in April amidst heightened trade tensions.
The S&P 500 gained 0.52%, closing at a record 6,173.07. Earlier in the session, it touched an intraday high of 6,187.68. The tech-heavy Nasdaq Composite also reached an all-time high, rising 0.52% to close at a record 20,273.46. The Dow Jones Industrial Average added 432.43 points, or 1%, settling at 43,819.27.
Navigating Trade Turbulence
Stocks initially benefited from optimism fueled by comments from Commerce Secretary Howard Lutnick late Thursday, suggesting a trade framework with China was finalized and deals with 10 major partners were imminent. However, momentum briefly slowed after President Donald Trump announced on Truth Social that the U.S. was terminating trade talks with Canada immediately in response to a new digital services tax.
This latest episode highlights Wall Street’s ongoing effort to navigate a volatile global trade landscape under the Trump administration. The market had previously tumbled in early 2025 following the initial implementation of severe tariffs, with the S&P 500 down nearly 18% by April. A subsequent recovery began as tariff rates were walked back and trade negotiations commenced.
Key Drivers Behind the Market Rally
The S&P 500 is now up over 20% since its low point on April 8 and nearly 5% year-to-date. This comeback has persisted despite factors like a spike in oil prices driven by the Israel-Iran conflict and rising Treasury yields due to deficit concerns.
AI Stock Boom: A significant catalyst for the rally has been the continued strength in the artificial intelligence sector, led by giants like Nvidia and Microsoft, both of which hit new record highs Friday.
Oil Market Stability: Despite earlier fears, the Middle East conflict did not lead to a prolonged oil shock. Crude prices ultimately fell sharply after Iran’s response to Israeli actions was calibrated to avoid escalation, easing concerns about supply disruptions. U.S. crude prices saw a significant weekly decline.
Improving Sentiment: Investor sentiment showed improvement in June, according to the University of Michigan survey, largely driven by a sharp decline in inflation expectations.
Earnings and Growth Outlook: Looking ahead, analysts like Thierry Wizman, global FX and rates strategist at Macquarie Group, point to underlying economic fundamentals. “Ultimately, this all comes back to growth in the U.S. economy and growth of earnings,” Wizman commented, while noting potential risks if trade progress turns out to be mere “hype.”
Notable Stock Movements
Beyond the major indices, several individual stocks and sectors saw significant action:
Coinbase’s Impressive Run: Crypto exchange Coinbase stands out as the top performer in the S&P 500 for June, fueled by positive legislative developments, the strong IPO performance of Circle, and its recent inclusion in the benchmark index. The stock is up significantly since the April market low and is pacing for its third straight monthly gain.
Credit Bureaus Dip: Shares of credit score providers Fair Isaac, Equifax, and TransUnion dropped following comments from Federal Housing Finance Agency director Bill Pulte about a “full scale review of all credit bureaus.”
Ride-Sharing Downgrade: Uber and Lyft shares fell after Canaccord Genuity downgraded them, citing uncertainty over the long-term threat posed by robotaxis.
AI Infrastructure M&A: Cloud infrastructure firm CoreWeave saw its stock rise amid reports of its bid to acquire bitcoin mining company Core Scientific, a move seen by analysts as strategically significant in the AI race.
Asset Management Shifts: Goldman Sachs updated its outlook on asset management stocks, upgrading Franklin Resources and Affiliated Managers Group while downgrading AllianceBernstein.
Apple Lags Tech Peers: While Nvidia and Microsoft surged, Apple shares added modest gains week-to-date and remain down significantly for the year, missing out on the latest tech rally highs.
Tesla’s Robotaxi Boost: Tesla saw positive movement for the week following the rollout of its autonomous robotaxi service in Austin, Texas, sparking investor hopes for its future in the autonomous vehicle space, despite the stock remaining down year-to-date.
Powering AI: Power stocks like Vistra, Talen Energy, NRG Energy, and Constellation Energy gained ground on reports that the Trump administration is considering executive orders to increase power supply to support AI infrastructure, such as data centers on federal land.
Economic Signals and Global Markets
The positive market sentiment came despite the Fed’s preferred inflation gauge, the core PCE price index, rising slightly more than expected in May (2.7% year-over-year vs. 2.6% forecast), raising ongoing questions about the path of interest rates.
Globally, Asia-Pacific markets showed mixed results Friday, with Japan’s Nikkei 225 climbing past 40,000, while indexes in South Korea, Hong Kong, mainland China, and Australia saw declines following disappointing industrial data from China.
The day’s trading underscored the market’s resilience, pushing major indices to record highs even as trade policy uncertainty continued to ripple through headlines.
