Wall Street reaches all-time highs, rebounding from turbulence due to tariffs

From Yahoo Finance: 2025-06-27 12:51:00

The S&P 500 and Nasdaq Composite hit all-time highs on Friday, rebounding from turbulence due to Trump’s tariffs. The S&P rose 0.68% to 6,182.7 points, surpassing the previous peak. Nasdaq went up 0.54% to 20,274.8, above its December high. Investor sentiment shifted due to rate cut hopes, a U.S.-brokered ceasefire, tamed prices, and trade deals.

After Trump’s tariffs announcement in April, the Nasdaq fell 26.7% from its peak, entering a bear market. Chief Investment Officers believe the market is buying into rising earnings estimates and manageable tariffs. Uncertainties in the world are diminishing, making people more optimistic about the future.

The removal of stumbling blocks like trade issues and Middle East tensions has boosted market confidence. Tariffs are no longer a major concern, and the Middle East issues seem to be off the table. Inflation is under control, the economy is stable, and there is ample money to invest, leading to the all-time highs.

Investors are regaining confidence in the market as concerns about tariffs causing massive inflation and economic collapse diminish. With clarity on tariffs and trade handling, investors are returning to the market. Business-friendly policies and reduced regulation are reviving sidelined projects, leading to a positive outlook in the markets.



Read more at Yahoo Finance: Wall Street hits record highs after turbulent months