From Yahoo Finance: 2025-06-27 16:28:00

Investors have shifted from panicking about tariffs to relief buying, lifting the U.S. stock market back to record highs as corporate earnings and the U.S. economy held up better than expected through a period of dramatic policy change. The S&P 500 closed at 6,173.07 on Friday, up 0.5%.

Stocks fell nearly 19% from the February high to April 8, sparking recession fears after Trump announced tariffs. The market rebounded as Trump moderated tariffs. The Nasdaq Composite also closed at a record high, confirming a bull market. Easing Middle East conflict fears and Fed rate cut hopes boosted stocks.

Volatility measures have drastically fallen with the VIX index at 16.32, near the long-term median. Downside risk is priced similarly to pre-tariff levels. A stronger-than-expected first-quarter earnings season for U.S. companies drove the rebound in stocks with S&P 500 profits rising 13.7%.

Investors are more optimistic about the stock market, with bullish sentiment rising but still below average. Renewed strength in megacap tech stocks like Microsoft, Nvidia, and Amazon has led the rally. The S&P 500 is up about 5% in 2025, fueled by the “Magnificent Seven” tech and growth stocks.

The market has rebounded from fears of a recession due to tariffs, with optimism prevailing. Earnings have exceeded expectations, driving the stock market to record highs. Bullish sentiment has increased, but concerns remain about the corporate outlook. Tech stocks have surged, leading the market higher.



Read more at Yahoo Finance: S&P 500 record fueled by earnings strength, easing tariff fear