US stock market today: S&P 500 near record, Nasdaq climbs as trade hopes and AI stocks boost momentum
As of June 27, 2025, the US stock market is trading strong, with major indexes holding close to record highs. Investors are upbeat following positive trade news from the Trump administration and continued gains in AI-related stocks.
S&P 500 (SPY) is trading around 614.84, up 0.48%, with the day’s high at 615.45 and low at 612.89.
Nasdaq (QQQ) is up 0.55% to 549.22, driven by growth in tech and artificial intelligence stocks.
Dow Jones (DIA) is at 436.69, gaining 0.64%, with strong support from major industrial players.
How did the major indexes perform today?
The S&P 500 and Nasdaq extended their impressive 2025 rallies, with both indices reaching never-before-seen levels. The Dow also joined the party, gaining over 270 points on strength in consumer and industrial stocks.
Which stocks were the biggest movers today?
Top Gainers:
Nike jumped nearly 10% after its earnings beat estimates, despite facing tariff pressure. Core Scientific (+5.5%), Oklo (+5.4%), and NuScale Power also surged on strong volume. Palantir rose 0.7%, while Nvidia added 0.5% as it edges toward a historic $4 trillion valuation. Notable Decliners: Concentrix slid 7.2% on weak Q2 guidance. Bruker (-4.4%) and Darling Ingredients (-2.6%) also fell. Gold mining giants like Newmont and Barrick lost around 2–2.3% amid rising bond yields.
What’s the broader outlook for the market?
Despite the bullish rally, analysts note that sector correlations remain unusually high (around 0.86), signaling some underlying investor caution. That said, if inflation continues to cool and trade deals expand, the market may still have plenty of upside left.
Why did the S&P 500 hit a new record now?
1. Trump–China trade breakthrough sparks bullish momentum
President Donald Trump announced a framework deal with China, signaling the easing of tech restrictions and the approval of rare earth exports. The deal, hailed as a win for both nations, boosted investor confidence in global trade stability. Commerce Secretary Lutnick added to the optimism, revealing that the U.S. is nearing similar trade pacts with 10 additional countries.
2. AI frenzy powers tech sector surge
The tech-heavy Nasdaq got a major boost from AI giants. Nvidia, Microsoft, and Palantir extended their rallies, with Nvidia inching closer to a staggering $4 trillion market valuation. The AI sector continues to dominate investor attention, as bets on next-gen technologies attract heavy inflows.
3. Cooling inflation fuels Fed rate-cut hopes
Fresh PCE inflation data for May came in softer than expected, reinforcing speculation that the Federal Reserve could cut interest rates as early as July. Lower borrowing costs are typically favorable for high-growth stocks, especially in the tech sector.
4. Geopolitical calm adds to bullish sentiment
Markets also got a breather from global tensions as reports confirmed a ceasefire between Iran and Israel. This development eased concerns over oil supply shocks and broader regional instability.
The Dow Jones Industrial Average also added 156 points, or 0.4%, while the Nasdaq Composite climbed 0.3% to 20,218, also marking a new record. The market has now not only recovered from its April slump but is up over 20% from the year’s low and nearly 5% for the year.
What changed after the April market drop?
Back in April, the outlook was bleak. The S&P 500 had dropped by almost 18% since its February peak due to rising tensions over U.S. tariffs, a spike in oil prices from the Israel-Iran conflict, and concerns about ballooning federal deficits. But the market started to rebound after President Trump softened his stance on tariffs and shifted focus to securing trade agreements instead.
Investor sentiment also improved as tech stocks regained momentum. The recovery has been strongly driven by the AI sector, with companies like Nvidia, which rose 0.9% on Friday to hit another record, and Microsoft, which also touched a fresh high before stabilizing.
Are inflation concerns still weighing on the market?
While a new inflation report showed a slight uptick, it wasn’t enough to derail Friday’s rally. The core personal consumption expenditures (PCE) price index, which is the Federal Reserve’s preferred inflation measure, rose 2.7% in May compared to a year ago. That was just a tick above the 2.6% forecast by Dow Jones economists.
Still, traders seem optimistic. The belief is that inflation remains manageable, and this could give the Fed room to cut interest rates later in the year—even if some tariffs remain in place.
What role is artificial intelligence playing in this market comeback?
A big part of the market’s strength is being driven by enthusiasm around artificial intelligence (AI). Stocks like Nvidia and Microsoft have been leading the charge. Nvidia, in particular, has hit multiple record highs this year as investors bet on continued growth in AI applications.
The sector has become a reliable cushion during periods of broader uncertainty, helping offset bearish headlines about tariffs, war, and inflation. As Ken Mahoney, CEO of Mahoney Asset Management, put it:
“The bearish narratives — Middle East conflict, tariffs, soft economic data — keep getting invalidated by the price action. Every chance the market has had to break down has failed.”
What’s next for U.S. markets under Trump’s trade policy?
President Trump’s shift toward negotiation rather than confrontation is seen as a major catalyst for the market’s upward move. The new trade framework with China, which includes agreements on rare earth exports and easing tech restrictions, is a clear signal that policy is moving in a more market-friendly direction.
Looking forward, if the Trump administration secures deals with more of the 10 trading partners mentioned by Lutnick, investor confidence could rise further. That, paired with cooling inflation and potential Fed rate cuts, sets up the S&P 500 and broader U.S. stock market for even more gains in the second half of 2025.
S&P 500: +0.4% to 6,168.60 (new record) Nasdaq Composite: +0.3% to 20,218 (new record) Dow Jones: +156 points, or 0.4% Nvidia: +0.9%, record high Microsoft: briefly hit a record, ended flat Core PCE inflation: +2.7% YoY (vs. 2.6% forecast)
FAQs:
Q1: Why did the S&P 500 hit a new record high?
Because of renewed trade deal hopes between Trump and China.
Q2: How are AI stocks like Nvidia affecting the market?
They’re driving strong gains and boosting investor confidence.
