US stocks approach record highs after recovering from spring drop

From Yahoo Finance: 2025-06-26 00:47:00

The U.S. stock market nearly reached a new record on Thursday, with the S&P 500 climbing 0.8% and sitting just below its all-time high. The Dow Jones Industrial Average surged 404 points, and the Nasdaq composite gained 1%. McCormick, a seller of cooking spices, led with a 5.3% jump after outperforming profit expectations.

Big technology stocks have been driving the market, with Nvidia, a chip company, rising 0.5% and Micron Technology reporting stronger profit and revenue than expected. The S&P 500 closed at 6,141.02, the Dow Jones at 43,386.84, and the Nasdaq at 20,167.91. Wall Street is still cautious about Trump’s tariffs and their impact on the economy.

Treasury yields fluctuated after reports on the economy, with the 10-year Treasury yield falling to 4.24%. Analysts noted pressure on yields following a report that Trump might name a nominee to replace Fed Chair Jerome Powell early, potentially impacting investor confidence. Powell has emphasized the Fed’s wait-and-see approach to tariff effects before adjusting rates.

Trump’s push for rate cuts has strained his relationship with Powell, prompting speculation about the Fed’s independence. Analysts warn that a politically influenced Fed chair could hinder inflation-fighting decisions. Overseas, European markets were mixed, with Japan’s Nikkei 225 rising 1.6% and South Korea’s Kospi falling 0.9%.

Read more: US stocks rise to the brink of a record and recover nearly all their 20% springtime drop