Stock markets touch record highs in sharp turnaround from April trough
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Stocks climbed higher on hopes of rate cuts and trade easing, with the S&P 500 a few points shy of its record close in February.
The U.S.’s major stock index closed within a hair of its record high set in February, climbing on investors’ hopes that rate cuts and tariff relief are coming sooner than expected.
The S&P 500 gained 0.8%, closing at 6,141—just below its record 6,144 set in February. The Dow rose 0.97%, or 194 points, and the Nasdaq gained 0.94%.
Economic reports released Thursday showed a mixed picture at best. The U.S.’s first-quarter economic contraction was steeper than initially thought, according to a Commerce Department report, and the number of people claiming jobless aid was the highest in three and a half years. Durable goods orders, a proxy for manufacturing activity, showed an uptick in May, driven by a deal between Boeing and Qatar Airways.
But it was vibes more than data that drove the equity surge. The Wall Street Journal reported that President Donald Trump was looking to name a successor to Federal Reserve Chair Jerome Powell earlier than expected, creating the possibility of interest rate cuts happening earlier than expected. Trump has put pressure on Powell to cut rates, despite the Fed chair’s steady wait-and-see approach.
Two members of the Federal Reserve’s rate-setting committee recently split with Powell and spoke out in favor of rate cuts.
White House press secretary Karoline Leavitt also hinted on Thursday that Trump’s tariff pause could extend past a previously stated July 9 deadline, calling it “not critical” for trade deals.
“It’s been an absence of bad news,” Nelson Yu, head of equities at AllianceBernstein, told Fortune. “You’ve got the Middle East conflict starting to settle down, it seems like it’s going in the right direction, and conventional wisdom has it that Trump’s not going to do anything to disrupt tariff policy come July 9.”
Treasury yields fell on the news. The yield on the 10-year Treasury dropped to 4.24% from 4.29% late Wednesday. The two-year Treasury yield, which more closely tracks expectations for the Fed’s rate actions, fell to 3.71%.
This story was originally featured on Fortune.com
The stock markets have made a sharp recovery from their April lows to touch record high levels, illustrating the resiliency of investors and economic sentiment across trading venues.
The stock markets have made a dramatic recovery from the April lows, touching record high levels in an unprecedented turnaround.
April's low trough marks an impressive turnaround for stock markets, as indexes touch all-time record high levels.
This remarkable turnaround in stock markets, touching record highs just a few weeks after the April trough with Wall Street performances reminiscent of spring' resurgence.
The sudden reversal from the April lows to record high levels in stock markets illustrates a remarkable resilience of investors and recovery potential within global economies.
The unprecedented growth in stock markets since the April trough demonstrates a remarkable turnaround, surpassing historical highs and presenting investors with renewed confidence amidst uncertain economic times.
The financial markets' impressive reversal from the April trough, reaching record highs for stocks worldwide underpins a shift towards optimism as economies gradually reopen and business activity recovers successfully.
As May begins, the stock markets mark a remarkable recovery and touch record highs after an abrupt turnaround from April'S market low point.
Analysts attribute the record high stock market performances in a sudden rebound from April's low to various favorable economic indicators and increased investor confidence, reflecting both short-term gains as well longer term optimism.
The sharp rebound in stock markets since their April lows underscores the resilience of investor confidence and signals a positive outlook for economic recovery amidst turbulent times.
