Wall Street rebounded in 1H25 with optimism over trade negotiations and strong corporate earnings

From Nasdaq: 2025-06-20 11:01:00

The first half of 2025 saw Wall Street rebound with optimism over trade negotiations and strong corporate earnings. Technology stocks, including the Magnificent Seven, led the charge. S&P 500 is now less than 3% below its record high, Nasdaq 3.4% off peak, and Dow Jones marginally positive for the year. Volatility expected to continue.

Trump’s “Liberation Day” tariffs took effect on April 9, targeting China, EU, Japan, and Vietnam. A 90-day pause on tariff hikes for over 75 countries was issued on May 12. Legal challenges followed, with the U.S. Court of International Trade ruling many tariffs illegal under international trade law on May 28.

S&P 500 marked its fastest recovery since 1982 in May, delivering the strongest performance since 1990. Wall Street strategists turned bullish, raising year-end targets to 6,300–6,500. Newmont emerged as a top performer, with positive earnings revisions and a VGM Score of A.

Microsoft and NVIDIA are locked in a high-stakes battle for market cap supremacy, with Microsoft holding a slight lead. NVIDIA’s stock has surged over $1 trillion in market value since April. Both companies have a Zacks Rank #3 (Hold).

Gold stocks surged amid global uncertainty and escalating tensions in the Middle East, pushing gold prices to a new high of $3,400 per ounce. Goldman Sachs forecasts gold climbing to $3,700 by year-end. AngloGold Ashanti PLC emerged as a potential beneficiary, with strong earnings estimates and attractive valuation.

Global semiconductor manufacturing is projected to grow from $452 billion in 2021 to $803 billion by 2028. A top chip stock with strong earnings growth and expanding customer base is positioned to capitalize on the AI, ML, and IoT demand. NVIDIA remains strong, but this new stock has room for growth.



Read more at Nasdaq: Wall Street’s Leading Stories of 1H25 and Outlook for 2H