The U.S. stock market surged into record territory on Monday, capping a dramatic rebound in the second quarter and kicking off a pivotal week for investors. Powered by Big Tech gains and optimism over global trade negotiations, both the S&P 500 and Nasdaq Composite hit fresh all-time highs, reflecting growing confidence in the market’s resilience amid economic crosswinds.
S&P 500 and Nasdaq Reach New Milestones
The S&P 500 (^GSPC) rose 0.52% to close at 6,204.95, its highest level ever, while the Nasdaq Composite (^IXIC) climbed 0.5%. The Dow Jones Industrial Average (^DJI) added 0.63%, or 275.50 points, closing at 44,094.77.
Leading the charge were technology giants. Nvidia (NVDA) and Meta Platforms (META) notched record closing highs. Microsoft (MSFT) hit an intraday high before slipping back slightly. These gains underscore the continued investor enthusiasm surrounding artificial intelligence and digital transformation themes.
Big Tech Drives Market Momentum
Big Tech continued its dominant performance in 2025. Meta led the pack with a 26% year-to-date gain, outperforming fellow “Magnificent Seven” names. The company’s renewed focus on AI, including a restructuring of its artificial intelligence group and a high-profile investment in Scale AI, has fueled investor optimism.
Microsoft (MSFT) and Nvidia (NVDA) also reached new heights. Morgan Stanley reaffirmed Nvidia as its top chip stock pick, citing strong near-term demand for its Blackwell GPUs despite ongoing supply chain bottlenecks.
Meanwhile, Robinhood (HOOD) shares skyrocketed over 12% following the announcement of tokenized stock trading for over 200 U.S. equities in the EU. The platform’s expansion into 24/7 trading via blockchain is being hailed as a transformative step in the democratization of global investing.
Trump Tariffs and Trade Developments
Investors are closely watching the July 9 deadline for President Trump’s sweeping “reciprocal” tariffs. So far, only partial deals have been struck with China and the UK, with the British agreement taking effect Monday. However, optimism surged after Canada scrapped its digital services tax targeting U.S. tech firms just hours before implementation, signaling potential progress in U.S.-Canada trade relations.
Trump’s decision to temporarily suspend certain tariffs appears to have calmed market nerves, as fears of a global trade war have eased. A potential breakthrough in trade talks could set the stage for a broader second-half rally.
Interest Rates, Inflation, and the Federal Reserve
Economic data and Fed policy are back in the spotlight. The 10-year Treasury yield (^TNX) dipped 5 basis points to 4.23%, reflecting investor expectations for lower interest rates. President Trump renewed his calls for the Fed to cut rates to 1%, sending a signed chart to Fed Chair Jerome Powell urging immediate action.
Markets are increasingly pricing in rate cuts. According to CME FedWatch, there’s a 93% chance the Fed will cut rates by September. Goldman Sachs now expects three quarter-point cuts by year-end, citing weakening labor data and diminished tariff impacts.
Jobs Report Looms Large
Thursday’s June jobs report could be a key catalyst for the market. Economists expect a 115,000-job gain, a modest increase that may support the case for Fed easing. The unemployment rate is forecasted to rise to 4.3%, a four-year high.
If the data aligns with expectations, markets may further solidify bets on rate cuts, potentially extending the current bull run.
Global Markets and Economic Backdrop
Globally, market sentiment was mixed. European shares opened cautiously higher, with the Stoxx 600 up just 0.1%, while Asia-Pacific markets showed divergence: Japan’s Nikkei 225 fell 1.24%, while South Korea’s Kospi rose 0.58%.
The broader economic landscape remains uncertain. EY chief economist Greg Daco warned of potential “tariff-induced inflation” and slower consumer spending in the second half of the year, calling it a period of “fog in the data.”
Notable Movers and Headlines
- Alphabet (GOOG) was downgraded by BNB Paribas, citing limited monetization of its Gemini AI platform.
- Oracle (ORCL) surged after revealing multiple high-value cloud services agreements.
- Tesla (TSLA) declined 1.8% as investors await Q2 vehicle delivery data expected Wednesday. CEO Elon Musk sharply criticized Trump’s spending bill, calling for a new political party.
- INmune Bio (INMB) stock plummeted 60% after its Alzheimer’s drug failed to meet expectations in clinical trials.
What’s Next for Investors?
As we enter the second half of 2025, the outlook remains cautiously optimistic. The market has rebounded strongly from its April lows, but upcoming trade decisions, the Fed’s next moves, and key economic data could swing sentiment quickly.
Analysts recommend investors focus on sectors sensitive to rate cuts, such as housing and manufacturing, while continuing to monitor momentum in AI, Big Tech, and blockchain innovation.
Bottom Line: The “stock market today” reflects a critical juncture for investors. With new records set, rate cuts on the horizon, and geopolitical negotiations underway, market participants must stay informed and agile. The second half of 2025 promises both opportunity and volatility.