“Dow Jones Surges 400 Points as Tech Stocks Rally; Nike Leads Gains”
Wall Street shrugged off fresh trade tensions Friday as the S&P 500 and Nasdaq Composite surged to record highs, fueled by optimism over U.S.-China trade progress and expectations of Federal Reserve rate cuts later this year.
Markets Hit New Peaks
The S&P 500 climbed 0.5% to close at 6,187.68, surpassing its previous record set in February. The Nasdaq also gained 0.5%, while the Dow Jones Industrial Average jumped 432 points (1%), boosted by strong earnings from Nike.
Friday’s Market Performance
| Index | Closing Level | Change (%) | YTD Gain (%) |
|---|---|---|---|
| S&P 500 | 6,187.68 | +0.52% | +18.3% |
| Nasdaq | 24,501.92 | +0.52% | +22.7% |
| Dow Jones | 39,845.71 | +1.09% | +15.9% |
Trade Whiplash: Deal Progress, Then Canada Shock
Stocks initially rallied after Commerce Secretary Howard Lutnick confirmed the U.S. and China finalized a trade framework, with agreements expected soon with 10 other major partners. But gains briefly stalled after President Donald Trump announced on Truth Social that he was halting trade talks with Canada, citing its new digital services tax.
- U.S.-China Deal: China agreed to supply rare earth minerals, per Lutnick.
- Canada Fallout: Trump vowed new tariffs within a week, rattling markets before the rebound.
Fed Rate Cut Debate Heats Up
Investors are betting on a September rate cut, but Friday’s PCE inflation data (up 2.7% year-over-year) complicated the outlook. Fed Chair Jerome Powell warned tariffs could delay easing, though slowing growth keeps hopes alive.
Key Economic Data
| Metric | May 2025 Reading | Fed Target | Market Reaction |
|---|---|---|---|
| Core PCE Inflation | +2.7% YoY | 2.0% | Mixed |
| 10-Year Treasury Yield | 4.27% | — | Slightly higher |
Big Movers: Nike Soars, Tech Mixed
- Nike (NKE): +15% after earnings beat, tariff mitigation plans.
- Tech: Amazon (+3%), Nvidia (+2%) rose; Tesla (-1.4%) and Apple (flat) lagged.
- Bitcoin: Dipped to $107,100 after weekend volatility.
What’s Next?
- Trade Watch: Canada tariff details, China deal implementation.
- Fed Signals: July meeting could hint at September cut timing.
- Q2 Earnings: More retail and tech reports next week.
“Markets are betting on a soft landing, but trade and inflation risks remain wildcards,” an analyst said. “For now, the rally has legs.”