S&P 500 Sets New Record
The S&P 500 closed at 6,173 on Friday. This marked a new record closing high. It had dipped slightly after President Donald Trump announced an end to trade talks with Canada. The index later recovered. The previous record closing level was 6,144. During the morning session, the index rose by 0.3% and reached 6,156 for the first time.
Nasdaq Follows with New High
The Nasdaq also set a new closing record. It reached 20,273 on Friday. The technology-heavy index has grown sharply in recent weeks. Over the past month, the Nasdaq climbed 28%. The growth reflects investor confidence in large technology firms.
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Strong Market Performance
Since April, the stock market has seen consistent gains. The S&P 500 has climbed more than 20% during this time. The gains followed Trump’s announcement of “Liberation Day” tariffs.
The Dow Jones Industrial Average also increased 12% over the same period. Analysts note that investor sentiment has shifted. There is now less concern about unpredictable policies and more hope for stable economic growth.
Rollback of Tariffs Boosts Markets
In recent weeks, the US government has reduced several tariffs. These rollbacks have reduced costs for companies. They also helped reduce fears of sudden inflation increases. A key development was the trade deal between the US and China.The agreement cut tariffs between both countries. This led to a rise in stock prices. Wall Street analysts quickly revised their recession forecasts. Many now see a more stable path ahead.
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Positive Economic Indicators
Other factors also supported the market’s climb. New economic data showed the US economy is steady. Inflation did rise slightly in recent data, but it remains close to the lowest level seen since 2021. Hiring slowed in May but remained stable.
Many economists believed hiring would decline further due to trade tensions. However, recent government data showed hiring was not as affected as expected.
Middle East Conflict Causes Brief Market Dip
Earlier this month, a conflict between Iran and Israel caused a temporary decline in the stock market. Oil prices also rose during this period. But a ceasefire helped bring stability. Oil prices then dropped, and stocks regained momentum.
US Ends Trade Talks with Canada
Stocks briefly dropped again on Friday afternoon. This followed an announcement by President Trump. He said the US would end all trade talks with Canada. He made the statement on his social media platform.
Trump’s decision followed Canada’s move to impose a digital service tax. The tax targets US technology companies. Trump called the tax a direct move against the US. This led to market concerns, though the indexes later recovered.
FAQs
Why did the S&P 500 and Nasdaq reach record highs?
Reduced tariffs, a stable economy, and better investor sentiment supported strong growth in the S&P 500 and Nasdaq, pushing both to new record highs.
What triggered the temporary dip in the market on Friday?
President Trump’s decision to end trade talks with Canada after their digital tax announcement briefly caused a dip in stock prices.
