TLDR
- S&P 500 gained 0.8% and Nasdaq rose 1%, both closing just short of record highs on Thursday
- White House spokesperson said July tariff deadlines are “not critical” and could be extended, boosting market confidence
- Stock market has rallied over 27% from April lows after tariff fears drove near-bear market conditions
- Tech stocks led gains with Nvidia hitting new all-time high and Meta, Alphabet posting strong advances
- Initial jobless claims fell to 236,000, below expectations, showing labor market stability
The S&P 500 and Nasdaq Composite rose within striking distance of record highs Thursday after White House comments eased concerns about upcoming tariff deadlines. The broad market index gained 0.8% to close at 6,141.02, just points away from its February all-time high of 6,147.43.
The Nasdaq Composite advanced 0.97% to 20,167.91, also inches from a new record. The Dow Jones Industrial Average climbed 404 points, or 0.94%, to 43,386.84.
Markets surged after White House spokesperson Karoline Leavitt downplayed the importance of July tariff deadlines that have weighed on investor sentiment. “The deadline is not critical,” Leavitt said. “Perhaps it could be extended, but that’s a decision for the president to make.”
Two key dates have loomed over markets in recent weeks. July 8 marks when “liberation day” tariffs are set to take effect after a 90-day pause. July 9 represents the deadline for a European Union deal to avoid 50% tariffs.
The comments validated investor beliefs that President Donald Trump would not implement the supersized tariffs that sent markets tumbling in April. Those fears pushed the S&P 500 close to bear market territory during the spring selloff.
Tech Stocks Drive Recovery
Technology shares led Thursday’s advance, continuing their role in the market’s recovery from April lows. Nvidia rose 0.5% to touch a fresh all-time high as artificial intelligence optimism persisted.
Meta Platforms gained more than 2% while Alphabet climbed 1.7%. These gains helped power the broader market higher as tech companies maintain their outsized influence on major indexes.
Nvidia shares have surged nearly 80% since their April low point. Initial concerns about Chinese competition and slowing AI spending have proved unfounded as the chipmaker continues to benefit from artificial intelligence demand.
Economic Data Shows Stability
Economic indicators released Thursday reinforced the case for market optimism. Initial jobless claims for the week ending June 21 fell to 236,000, coming in below the consensus estimate of 244,000.
⚠️BREAKING:
*U.S. JOBLESS CLAIMS RISE 236,000; EST. 244,000; PREV. 246,000
🇺🇲🇺🇸 pic.twitter.com/l4sq63OYHA
— Investing.com (@Investingcom) June 26, 2025
The labor market data suggests the economy remains on stable footing despite earlier concerns about a potential slowdown. Bond markets also rallied, with the 2-year Treasury yield falling to 3.71%, its lowest 3 p.m. level since May 1.
The 10-year Treasury yield dropped to 4.25% as investors positioned for potential Federal Reserve rate cuts. The central bank’s preferred inflation gauge, the personal consumption expenditures price index, will be released Friday morning.
Market Recovery From April Lows
The S&P 500 has gained more than 27% from its intraday low in April when tariff fears dominated headlines. The benchmark index nearly entered bear market territory during that period of uncertainty.
After completing this round trip, the S&P 500 now shows a gain of more than 4% for 2025. The recovery has been driven by strong corporate earnings, stable employment conditions, and renewed interest in artificial intelligence stocks.
Geopolitical tensions that contributed to market volatility have also eased recently. The ceasefire between Israel and Iran continues to hold, with Trump indicating that U.S.-Iran meetings will likely occur next week.
Oil prices have fallen this week after an initial surge, helping to calm inflation concerns that had worried investors about potential Federal Reserve policy changes.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
