Stock market closed first half of 2025 with record highs, boosted by multiple positive factors

Wall Street closed the first half of 2025 with record highs, signaling a strong rebound after a tumultuous spring. The S&P 500 and Nasdaq Composite surged 5.5%, with the Dow Jones Industrial Average rising 3.6%. Factors driving the rally included artificial intelligence, trade optimism, and strong corporate earnings. Federal Reserve Chair Jerome Powell hinted at interest rate cuts, boosting investor confidence. The rally is broadening beyond tech to other sectors, with the S&P 500 set for a historically strong July. Five ETF trends to watch include the AI boom and the “Magnificent Seven” stocks.

Gold prices are set to shine further in 2025, driven by safe-haven demand and central bank accumulation. SPDR Gold Shares and iShares Gold Trust are top ETF picks to ride the gold surge. U.S. dollar weakness and international stimulus are prompting investors to look overseas, with Vanguard FTSE Developed Markets ETF and Schwab International Equity ETF being popular options for international exposure. Tariff uncertainty and dividend investing are also key themes to watch in the second half of the year.

Read more at Zacks Investment Research: 5 ETF Predictions for the Second Half of 2025 – July 7, 2025