S&P 500 nears record high

Wall Street is riding high as the S&P 500 closed near a new record, rising 23% since stocks crashed and the market lost trillions of dollars after President Donald Trump announced “Liberation Day” tariffs.

The S&P climbed to 6,141 yesterday—just three points shy of its all-time high of 6,144 set in February.

The Nasdaq also surged to 20,167, nearly matching its December peak. The rally comes after President Trump announced a ceasefire between Israel and Iran and investors’ worries of a looming oil crisis abate.

Analysts say the rally could break records by Friday or early next week.

Reasons behind the rally
Investors’s confidence has improved as trade talks between the US and China made progress. A 90-day pause on Trump’s reciprocal tariffs ends July 9, but recent calm from Washington has reduced market fears. Still, the Wells Fargo Investment Institute warns tariffs could hit the hardest in the third quarter.

Tech stocks lead the way
Tech giants like Nvidia, Apple, and Amazon are driving the rally. Nvidia hit a record high and reclaimed its spot as the world’s most valuable company. 

With tech and financials comprising over 40% of the S&P, strong AI-driven earnings from firms like Micron are fueling growth.

What’s in the future?
Though the Fed held rates steady in June, two cuts are expected this year. Markets anticipate the first as early as September. 

Lower rates could spur spending and boost corporate earnings, giving investors more reason to stay bullish despite lingering geopolitical risks.