Wall Street Roars S&P 500's Epic Comeback!

S&P 500 Climbs to New Heights, Capping Off Remarkable Second-Quarter Comeback

The stock market continues its impressive run, with the S&P 500 achieving yet another record high, marking a triumphant conclusion to the second quarter. This surge underscores a significant recovery after earlier uncertainties.

Here's a snapshot of Monday's market performance:

• S&P 500: Gained 0.2%, building on previous record highs.
• Nasdaq Composite: Advanced 0.2%, also reaching fresh all-time highs.
• Dow Jones Industrial Average: Climbed 167 points, or 0.4%.

This upward momentum follows Canada's decision to rescind its digital service tax, a move intended to smooth trade negotiations with the United States. This is particularly noteworthy after former President Donald Trump's statement on Friday regarding the termination of trade discussions with Canada. The now-rescinded tax would have impacted major tech companies like Google, Meta, and Amazon, with initial payments slated to begin Monday.

Investors are keenly watching for any developments in trade deals between the U.S. and its trading partners, especially with the expiration of Trump's 90-day tariff reprieve looming next week. Treasury Secretary Scott Bessent indicated that some countries are negotiating "in good faith." However, he cautioned that tariffs could revert to their April 2 levels if agreements aren't reached due to uncooperative behavior.

National Economic Council Director Kevin Hassett suggested that trade deals could be finalized after the passage of Trump's "one, big, beautiful" bill. This package recently cleared a crucial procedural vote in the Senate but faces an uncertain future in the House, where some GOP lawmakers have expressed reservations about recent revisions.

While the approaching tariff deadline and the ongoing tax bill discussions may introduce volatility in the latter half of 2025, market fundamentals suggest continued positive momentum. Terry Sandven of U.S. Bank Wealth Management highlights these factors:

• Equity fundamentals
• Improving market breadth

According to Sandven, "The wall of worry is crumbling as stocks reach all-time highs." He further elaborated, "Inflation is stable, interest rates are range-bound and earnings are trending higher. That's a favorable backdrop for stocks to continue to forge higher as we begin the second half." His year-end target implies a potential upside of over 2% for the S&P 500 from Friday's closing value.

June has proven to be a remarkable month, witnessing a robust recovery in major averages, propelling them back to record levels. Key highlights for June include:

• S&P 500: Up more than 4%.
• Nasdaq: Jumped more than 6%.
• Dow: Added approximately 4%.

This strong performance marks a significant turnaround from early April, when global trade and tariff anxieties pushed the S&P 500 perilously close to bear market territory. The index is now poised to conclude the quarter with substantial gains, mirroring the positive trajectory of the other leading indices. Quarter-to-date performance reveals:

• S&P 500: Increased by more than 10%.
• Nasdaq: Is more than 17% higher.
• Dow: Is more than 4% higher.

As we move into the second half of the year, the market's resilience and strong underlying factors provide a foundation for continued optimism. While potential headwinds remain, the overall sentiment suggests a positive outlook for investors. The second-quarter comeback serves as a powerful reminder of the market's capacity to adapt and thrive amidst ongoing global economic dynamics.

Tags: S&P 500, Nasdaq, Dow Jones, Stock Market, Trade Negotiations, US Canada Trade, Digital Tax, Donald Trump, Scott Bessent, Tariffs, Market Analysis, Economic Outlook

Source: https://www.cnbc.com/2025/06/29/stock-market-today-live-updateshtml.html