Stock Market Today: S&P 500 and Nasdaq Soar to New Records, Capping an Impressive Second-Quarter Comeback
By Rian Howlett, Karen Friar, and Laura Bratton
Updated Monday, June 30, 2025, 9:23 PM ET
In a stunning finish to a highly volatile first half of 2025, U.S. stock markets surged to fresh record highs on Monday, fueled by optimism around global trade progress and optimism regarding upcoming economic data. The technology-driven S&P 500 and Nasdaq Composite each notched new all-time highs, underscoring a remarkable second-quarter rally.
Market Highlights
The S&P 500 rose approximately 0.5%, closing above the significant 6,200 mark for the first time ever. Similarly, the Nasdaq Composite gained about 0.5%, buoyed by strong performances from major technology companies. Nvidia and Meta led Big Tech’s rally with both recording new peak closing prices. Microsoft also flirted with an all-time high earlier in the session but ultimately settled just shy of breaking its record.
The Dow Jones Industrial Average outperformed slightly, climbing over 0.6%, though it continued to recover from earlier declines and has yet to surpass its previous high set last December.
Trade Talks Boost Sentiment
Investor confidence strengthened amid encouraging signs that the United States and its major trading partners are nearing agreements to resolve long-standing tariff disputes. Notably, Canada withdrew its planned digital services tax targeting U.S. tech giants just hours before its implementation deadline, a move widely seen as an effort to revive stalled global trade negotiations. This development raised hopes of avoiding an extended trade conflict, especially ahead of a critical July 9 deadline when sweeping U.S. “reciprocal” tariffs might otherwise be reinstated.
President Trump expressed optimism over these trade discussions, indicating he did not anticipate needing to prolong tariff measures past the impending deadline. So far this year, the Trump administration has secured two preliminary agreements involving China and the United Kingdom, with the UK tariff deal officially taking effect Monday.
Legislative and Economic Focus
Beyond trade, market participants closely monitored the Senate’s marathon session dealing with President Trump’s proposed $4.5 trillion tax cut bill. Republican leaders were striving to convince party holdouts to support the measure, which the Congressional Budget Office estimates would add $3.3 trillion to the national deficit over a decade if enacted in its current form.
Treasury yields reflected cautious optimism as the 10-year Treasury note yield dipped approximately five basis points to 4.23%, signaling renewed demand for government bonds amid market uncertainties.
Looking ahead, investors are focusing on the highly anticipated June jobs report scheduled for release on Thursday. Strong labor data combined with growing speculation that the Federal Reserve may lower interest rates later this year has contributed to the prevailing upbeat market sentiment. However, trading volumes are expected to be lighter due to a holiday-shortened week, with markets closing early at 1 p.m. ET on Thursday and remaining closed Friday for Independence Day.
A Volatile Yet Upbeat First Half
The market’s strong performance to close June caps a turbulent six months marked by tariff skirmishes and geopolitical tensions that initially created significant volatility. Nevertheless, many investors remain “bullish” as they head into the second half of 2025, hopeful that easing trade tensions and accommodative monetary policy will support continued gains.
Summary
- S&P 500 and Nasdaq Composite hit new record highs, rising about 0.5%.
- Dow Jones Industrial Average gained 0.6%, still below December’s record close.
- Big Tech leaders Nvidia and Meta reached all-time highs; Microsoft approached a new peak.
- Canada scrapped a digital services tax targeting U.S. tech companies.
- Trade talks between the U.S. and key partners show progress, easing fears of a prolonged trade war.
- Senate debates President Trump’s $4.5 trillion tax cut proposal amid concerns over deficit impact.
- The 10-year Treasury yield fell to 4.23% as bond demand grew.
- Market focus shifts to the June jobs report due Thursday.
- Markets to close early Thursday and remain closed Friday for the July 4 holiday.
As markets wrap up a volatile but ultimately rewarding first half of the year, investors will closely watch trade developments and economic indicators for clues on the trajectory of the equity rally moving forward.
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