Stock market hits record highs despite concerns of inflation, uncertainties ahead

From Yahoo Finance: 2025-06-29 09:30:00

Stocks reached record highs, marking a historic comeback from April’s bottom. Concerns of tariff-induced inflation persist, with the Federal Reserve’s preferred gauge showing price increases in May above the 2% target. Uncertainty around policy and economic growth complicates Fed rate decisions, potentially leading to a cut in September.

Investors remain optimistic despite economic worries, focusing on tech and financial sectors. Consumer sentiment rebounds as trade policy clarity emerges. President Trump’s unpredictability impacts markets, with companies like GM, American Airlines, and Mattel withdrawing guidance due to trade war concerns. Lowered expectations set the stage for potential upside surprises in the second half of the year.

Despite uncertainties, positive growth aspects and the AI narrative contribute to market optimism. Earnings season expectations are lowered, potentially leading to outperformances. Increased IPO activity and the resurgence of the AI narrative offer further opportunities for market growth. Senior Reporter Allie Canal covers these developments for Yahoo Finance. 1. In a recent study, researchers found that over 70% of Americans are concerned about the impact of climate change on their health. The study also revealed that a majority of people believe the government should take more action to address this issue.

2. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by over 500 points. This decline was attributed to concerns about inflation and rising interest rates.

3. A new report shows that the average price of a gallon of gas in the United States has reached $3.00 for the first time in seven years. This increase is due to a combination of factors, including rising oil prices and high demand for fuel.

4. The latest data from the CDC indicates that the number of COVID-19 cases in the US has decreased by 20% in the past week. This decline is attributed to the increasing number of people getting vaccinated and following public health guidelines.

5. In sports news, a record-breaking performance was seen at the Olympics as an athlete broke the world record in the 100m sprint. The athlete’s incredible speed and skill have garnered praise from fans and fellow competitors alike.



Read more at Yahoo Finance: Soaring stock market nears second half of 2025 with lingering uncertainty