Niall Pawa and Joseph Lawler, two traders, are seen working at the New York Stock Exchange on Wednesday, June 25, 2025. (AP Photo/Richard Drew)
On Thursday, Wall Street saw a major rebound as the U.S. stock market edged back toward record territory. The S&P 500 rose by 0.8%, landing just 0.05% below its all-time closing high set in February. It briefly surpassed that record earlier in the afternoon, marking a striking comeback after a sharp 20% decline this spring caused by concerns over tariffs from President Donald Trump.
The Dow Jones Industrial Average jumped 404 points (0.9%), while the Nasdaq composite added 1%.
Spice Giant McCormick Leads Gains
McCormick, a household name in spices, surged 5.3% after reporting better-than-expected quarterly earnings. The company also forecast stronger full-year profits, despite inflationary pressures from tariffs. Their strategic cost-cutting efforts appear to be paying off, which has boosted investor confidence.
Tech Stocks Keep Driving Momentum
Technology remains a powerful force in the market's upward climb. Nvidia, known for its AI-related chips, gained 0.5%. The company’s stock has skyrocketed 61% since April, far outpacing the broader S&P 500's 23% growth. Similarly, Super Micro Computer, another AI-favourite, rallied 5.7%, pushing its gains to 55% since April 8.
Micron Technology, which specializes in memory and storage, had a more volatile day. Though it reported higher-than-expected profits and revenue, and projected continued growth due to AI demands, its stock ultimately dipped 1%.
Wall Street's Numbers at a Glance:
- S&P 500: Up 48.86 to 6,141.02
- Dow Jones: Up 404.41 to 43,386.84
- Nasdaq: Up 194.36 to 20,167.91
Economic Reports Offer Mixed Signals
While trade tensions remain, recent data suggests the U.S. economy is still hanging on—though slowing.
- Durable goods orders, such as appliances and machinery, rose more than expected last month.
- Fewer Americans filed for unemployment benefits, hinting at job market resilience.
- However, the economy shrank more than earlier estimated in Q1 2025. Many economists, though, attribute that dip to companies stocking up on foreign goods ahead of expected tariffs, and they anticipate stronger growth in coming months.
Bond Market Sees Shifts
Following these reports, Treasury yields sawsawed.
- 10-year Treasury yield fell from 4.29% to 4.24%.
- 2-year yield, closely tied to Federal Reserve expectations, dipped from 3.74% to 3.71%.
Analysts suggest a new twist added uncertainty to the bond market: reports indicate that Trump may name a replacement for Fed Chair Jerome Powell sooner than expected. Critics worry this could politicize interest rate decisions and potentially disrupt inflation control.
Interest Rate Debate Heats Up
Powell has stressed caution, waiting to see the effects of tariffs before making changes to interest rates. The Fed has kept rates steady this year, avoiding cuts that might fuel inflation. However, Trump has openly criticized Powell and pushed for quicker cuts. Some of his appointees to the Fed support lowering rates as early as July.
Brian Jacobsen, chief economist at Annex Wealth Management, warned that putting a “White House puppet” in charge could stoke inflation fears. Still, he noted that rate decisions aren’t made by the chair alone but by the entire Fed committee.
Global Markets Show Mixed Movement
Outside the U.S., market performance was varied:
- Japan’s Nikkei 225 climbed 1.6%.
- South Korea’s Kospi fell 0.9%.
- European markets showed a mixed close.
