【Epoch Times, June 28, 2025】The US stock market reached new historic highs on Friday, June 27. Both the S&P 500 and Nasdaq indices set new closing records simultaneously. This indicates that corporate earnings surpassed expectations, tensions in US-China trade eased, and the expectations of Federal Reserve (Fed) rate cuts increased, leading Wall Street to shake off recession concerns since April and entering a technical bull market.
The S&P 500 index rose by 0.52% on Friday, closing at 6,173.07 points, surpassing the previous all-time high set on February 19 (6,144.15 points). Among the S&P 500 stocks, 35 hit 52-week highs, with only 6 hitting new lows.
The tech-heavy Nasdaq Composite Index also rose by 0.52%, closing at 20,273.46 points, marking a more than 20% rebound since its low point on April 8 and officially confirming entry into a bull market. The S&P 500 had already entered a technical bull market in mid-May.
The Dow Jones Industrial Average rose by 1.00%, closing at 43,819.27 points, still 2.7% lower than its high in December 2024.
Investor sentiment reversed primarily due to strong corporate earnings and temporary relief in geopolitical risks.
Reuters pointed out that better-than-expected earnings reports from US companies for the first quarter were key factors driving the stock market rebound. According to LSEG IBES data, overall profits of S&P 500 constituent companies grew by 13.7% annually, far exceeding the expected 8% as of April 1.
Tech and consumer stocks particularly shined, with Nike predicting a smaller-than-expected revenue decline for the quarter, leading to a 15.2% surge in its stock price. Micron’s optimistic financial forecasts boosted confidence in AI-related themes, with Nvidia rising by 1.8% and nearing a $4 trillion market value.
On the geopolitical front, a ceasefire between Israel and Iran, along with a recent agreement between the US and China, speeding up rare earth exports, also helped ease market risk concerns temporarily.
Simultaneously, expectations for Fed rate cuts are growing stronger. According to the CME FedWatch tool, investors estimate a 76% probability of a rate cut by September, with another 19% suggesting the possibility of an earliest cut starting in July.
This rally is not limited to the stock market alone; overall market performance in June has been the strongest in 13 months, showing a rare synchronous rebound across different asset classes.
Bloomberg noted that US stocks, long-dated US treasuries, high-yield bonds, and major asset prices all rose, forming the strongest monthly price increase combination since May 2024.
High-yield bonds have risen for the fifth consecutive week; the yield on 10-year US treasuries has dropped by about 10 basis points. Bitcoin returned to the $100,000 threshold, and Coinbase’s stock price hit a new high in 2021.
Driving this current trend are the “Magnificent Seven” of the US stock market. Since April 8, the Roundhill ETF tracking this group has surged by around 37%, far outstripping the S&P 500’s 24% gain during the same period. These stocks have been the driving force behind market uptrends since 2023, propelling the S&P 500 to annual gains exceeding 20% in both 2023 and 2024.