NEW YORK – On Thursday, the U.S. stock market approached another milestone, inching closer to its record heights. The S&P 500 made an impressive climb of 0.8%, positioning itself just 0.05% beneath its historical highest closing figure recorded in February. During the afternoon, it briefly surpassed this benchmark, representing another milestone for this index, which is central to many 401(k) retirement plans. Earlier in the spring, the index had dropped approximately 20% below its record level, primarily due to concerns surrounding President Donald Trump’s tariffs.
Simultaneously, the Dow Jones Industrial Average surged by 404 points, translating to a 0.9% rise, and the Nasdaq composite saw a 1% increase. A significant contributor to this rally was McCormick, the prominent cooking spices company, which saw its shares leap by 5.3% after reporting better-than-anticipated profits. Additionally, the company unveiled a profit forecast for the entire fiscal year that exceeded analyst predictions, which factored in strategies to mitigate escalating costs from tariffs.
For the long haul, robust technology stocks have driven the market for several years and have been instrumental since the S&P 500 bottomed out in April. Chip manufacturer Nvidia, a leader in the field of artificial intelligence technology, climbed by 0.5%. Remarkably, it has become the most valuable company in the U.S. stock market, skyrocketing 61% since April 8, far exceeding the S&P 500’s gain of 23%. Another AI-centric company, Super Micro Computer, saw a 5.7% upswing, contributing to a 55% cumulative gain since April 8.
In contrast, Micron Technology experienced fluctuations in gains and losses after announcing quarterly profits and revenues surpassing market expectations. According to CEO Sanjay Mehrotra, the company is witnessing increased memory demand fueled by AI, and its profit forecast for the current quarter outpaced analyst estimations. Still, the company’s stock concluded the day with a 1% decline.
Ultimately, the S&P 500 closed with a rise of 48.86 points, reaching 6,141.02. Meanwhile, the Dow Jones Industrial Average ascended 404.41 points to 43,386.84, and the Nasdaq composite marked a gain of 194.36 points, settling at 20,167.91. Concerns over President Trump’s tariffs, although diminished since he proposed substantial levies in April, still linger. The impending tariffs’ scope, potential economic impact, and inflationary pressures remain to be seen. Nevertheless, current economic indicators reflect resilience, albeit with signs of deceleration.
Economic data released on Thursday provided additional support. One report highlighted a greater-than-expected increase in orders for durable goods, such as washing machines, last month. Another report indicated a decline in new unemployment benefit claims, suggesting fewer layoffs. A third report revealed that the U.S. economy contracted more than initially thought in the first three months of 2025. However, many analysts attribute this to a surge in U.S. companies stockpiling foreign goods ahead of tariffs. Optimistically, they predict improvement in future quarters.
Following these reports, Treasury yields fluctuated within the bond market before stabilizing. The yield on the 10-year Treasury note dipped to 4.24% from 4.29% on Wednesday, while the two-year Treasury yield, which aligns closely with Federal Reserve expectations, decreased to 3.71% from 3.74%.
Reports suggesting that President Trump might prematurely nominate someone to replace Fed Chair Jerome Powell also exerted pressure on yields. Such actions could undermine investor confidence in the Federal Reserve’s capacity to take unpopular measures against inflation. Though Powell has reiterated the Fed’s cautious approach towards tariff impact assessments before interest rate adjustments, President Trump has persistently pressed for immediate rate cuts, occasionally attacking Powell. Recently, two Trump-appointed Fed officials expressed openness to rate cuts in the Fed’s forthcoming July meeting.
According to Brian Jacobsen, chief economist at Annex Wealth Management, “Yields fell, the dollar weakened, and break-evens rose, all suggesting that a White House puppet assuming the Fed Chair could be detrimental to inflation.” However, Jacobsen emphasized that rate decisions would remain with a committee of Fed officials, who could potentially counterbalance and “check” a new leader if necessary.
Across international stock markets, European indexes displayed mixed performances, mirroring Asia’s varied outcomes. Japan’s Nikkei 225 recorded a 1.6% rise, whereas South Korea’s Kospi witnessed a 0.9% decline, exemplifying two of the more significant movements on the day.