Investors are focused on economic data and policy developments as stocks reach record highs

From Yahoo Finance: 2025-06-27 06:07:00

Investors are turning attention to economic data and policy developments after recent geopolitical events. The S&P 500 and Nasdaq hit record highs, boosted by interest-rate cuts and trade optimism. President Trump wants Republicans to pass a tax-cut and spending bill by July 4.

The U.S. employment report is due Thursday, with expectations of 110,000 new jobs in June. Citigroup’s economic index is weakening, indicating missed expectations. Unemployment rates may rise as people struggle to find work, impacting Fed interest rate cuts.

Fed Chair Powell warns higher tariffs could raise inflation. Some officials see a stronger case for rate cuts. Futures trading bets on more easing. Trade deals with 18 partners could be done by Labor Day. Markets remain sensitive to trade news.

S&P 500 is up 5% in 2025. July historically strong for stocks. Earnings season will focus on tariff impacts. Second-quarter earnings expected to rise 5.9%. Geopolitical focus shifting to fundamentals.

With the first half almost complete, investors are shifting focus to economic data, policy developments, and earnings reports to gauge the market’s trajectory. Fed interest rate cuts, employment data, trade deals, and corporate earnings will all play a crucial role in shaping market sentiment in the coming weeks.



Read more at Yahoo Finance: Investors eye US jobs data as stocks hit record highs