Nasdaq may reach new all-time high soon based on historical trends and economic conditions

From Yahoo Finance: 2025-06-27 05:22:00

The Nasdaq Composite Index is near its peak after rebounding quickly from a bear market. Uncertainty remains over how President Trump’s tariffs will affect the U.S. economy. The index may hit a rare feat by reaching an all-time high in just three months if the upward trend continues.

The Wall Street selloff in April over Trump’s tariffs has eased, boosting investor sentiment. The Nasdaq closed Thursday at 20,167.91, close to its peak. A bear market occurs after a 20% decline, but when it ends is debated. If the Nasdaq sets a new high soon, this bear market could be over in record time.

In past instances, the Nasdaq quickly rebounded after falling into a bear market and reached new highs soon after. Despite historical patterns, uncertainties remain, especially around Trump’s tariffs. If the tariff situation doesn’t derail the economy, strong corporate earnings and favorable economic data could propel the Nasdaq higher in 2025.

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Jeremy Bowman, author at The Motley Fool, has no position in the mentioned stocks. The Motley Fool has a disclosure policy. The article emphasizes the potential for the Nasdaq to hit a new all-time high based on historical trends and current economic conditions.

Read more: The Nasdaq Is on the Verge of a New All-Time High. History Says This Could Happen Next.