Wall Street returned to record highs at the end of June, with both the S&P 500 and Nasdaq 100 breaking above their February peaks, capping a powerful rebound from April’s tariff-driven lows.
Investor sentiment turned sharply positive as geopolitical and trade risks eased. Oil prices slumped $12 to $65 after a symbolic Iranian strike on a U.S. base in Qatar failed to escalate tensions further. President Donald Trump announced that a ceasefire between Israel and Iran had been established, ending the 12-day conflict.
During his two-day testimony before Congress, Federal Reserve Chair Jerome Powell said this year’s tariff hikes are likely to raise prices and weigh on the economy, warranting caution on interest rate decisions.
Powell’s neutral tone sparked renewed friction with President Trump, who continues to criticize the Fed chair and fuel speculation over a possible leadership change when Powell’s term ends in May 2026.
Markets now anticipate that Trump’s influence could lead to a more dovish pivot at the central bank. Traders are pricing in two rate cuts before year-end and persistent dollar weakness, with the U.S. Dollar Index falling to levels last seen in February 2022 — before Russia’s invasion of Ukraine — and heading for its worst half-year since 1991.
The stock rally gained momentum at the end of the week as Commerce Secretary Howard Lutnick said the U.S. reached a trade agreement with China. Officials also signaled progress in trade talks with at least 10 other countries, suggesting a softening stance from the White House toward protectionist policies.
In corporate news, Nvidia Corp. surged to new record highs, reaching a market capitalization of $3.85 trillion. The AI-chip giant reclaimed the title of the world’s most valuable publicly traded company, overtaking Microsoft Corp. once again.
Nvidia’s dominance in artificial intelligence continues to fuel investor demand, with analysts citing strong enterprise adoption, robust data center growth and unmatched pricing power in the chip space as key drivers of the valuation surge.
Benzinga is a financial news and data company headquartered in Detroit.
This article originally appeared on Detroit Free Press: Nvidia reclaims top title as Wall Street soars: The week in markets
Reporting by Benzinga / Detroit Free Press
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