On June 27, 2025, U.S. stock markets closed at record highs, buoyed by renewed trade optimism and robust corporate earnings. The S&P 500 reached an all-time high of 6,173.07, while the Nasdaq Composite rose to 20,273.46. The Dow Jones Industrial Average also advanced, closing at 43,819.27.
Investor sentiment was significantly bolstered by the finalization of a trade agreement between the United States and China. The deal includes reduced tariffs and renewed U.S. access to Chinese rare-earth minerals, alleviating concerns over supply chain disruptions in critical industries.
Anticipation surrounding the May Personal Consumption Expenditures (PCE) data also influenced market movements. The PCE price index, the Federal Reserve’s preferred measure of inflation, rose 2.3% year-over-year in May, aligning with expectations. However, the core PCE, which excludes food and energy prices, increased by 2.7%, slightly above forecasts. These figures suggest that while inflation remains above the Fed’s 2% target, it is not accelerating at a pace that would necessitate immediate policy changes.
In corporate news, Nike’s shares surged nearly 10% in premarket trading after the company reported quarterly earnings that exceeded analyst expectations. Despite a projected $1 billion impact from tariffs, Nike’s revenue reached $11.1 billion, surpassing forecasts. The company’s strategic initiatives appear to be yielding positive results, restoring investor confidence.
Conversely, Tesla’s shares dipped slightly following the departure of Omead Afshar, a top aide to CEO Elon Musk. Afshar’s exit comes amid declining European sales, with deliveries in the region falling 28% year-over-year in May. The company faces increased competition from Chinese electric vehicle manufacturers and challenges related to its aging vehicle lineup.
Overall, the markets’ upward trajectory reflects a combination of easing trade tensions, stable inflation data, and strong corporate earnings, suggesting a resilient economic outlook despite ongoing global uncertainties.
