Stock Market Today: S&P 500 and Nasdaq Hit Record Highs as U.S.-China Trade Deal Boosts Investor Confidence

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Major Indexes Reach New Heights at the Market Open

The U.S. stock market opened in record territory on Friday, June 27, 2025, as investors celebrated progress on trade negotiations and digested better-than-expected corporate earnings. At the opening bell, the S&P 500 rose 0.2% to 6,155 points, surpassing its previous all-time closing high of 6,144 set in February. The tech-heavy Nasdaq Composite gained 0.3% to 20,227, topping its previous record high of 20,174 reached in December 2024.

The Dow Jones Industrial Average climbed 0.4% to 43,627 in early trading but remains below its previous high of 45,014 set in December 2024. All three major indexes are on track to post significant gains for June, marking the second consecutive month of strong performance.

Today’s market open represents a remarkable turnaround since April, when the S&P 500 entered bear market territory amid concerns over the Trump administration’s tariff policies. The benchmark index has surged more than 27% from its intraday low for the year.

U.S.-China Trade Deal Fuels Market Optimism

Markets today are buoyed by President Trump’s announcement on Thursday that Washington and Beijing had signed an agreement on trade, although specific details remain unclear. The president also indicated that he expects to reach a deal with India soon, further easing investor concerns about global trade tensions.

“We think there’s a dangerous amount of complacency on trade/tariffs, a view underscored by the fact markets this morning are celebrating the China ‘deal’ for a third time,” Vital Knowledge analyst Adam Crisafulli cautioned in a report.

White House spokesperson Karoline Leavitt played down the July tariff deal deadlines that have been looming over markets, stating, “The deadline is not critical. Perhaps it could be extended, but that’s a decision for the president to make.” July 8 is when the so-called liberation day tariffs are set to take effect after a 90-day pause, and July 9 is the deadline for an EU deal to avoid 50% tariffs.

Nike Shares Soar After Beating Earnings Expectations

Nike (NKE) shares jumped approximately 15% at today’s market open after the athletic apparel giant topped fiscal fourth-quarter estimates. Despite reporting an 86% drop in profits and a 12% decline in revenue year-over-year, the company beat analyst expectations, signaling that CEO Elliott Hill’s turnaround plan is progressing.

During Thursday’s earnings call, Nike CFO Matt Friend warned that the company expects tariffs to lead to a hit of up to $1 billion in extra costs over its next fiscal year if they stay at current levels. The company plans to reduce its supply chain exposure to China from the current 16% to high single-digit percentage by the end of its fiscal year.

“With the new tariff rates in place today, we estimate a gross incremental cost increase to Nike of approximately $1 billion,” Friend said, adding that the company intends to “fully mitigate” that cost over time through supply chain adjustments, factory partnerships, and price increases.

Inflation Data Shows Uptick in May

As the stock market rallied Friday, investors digested new inflation data from the Commerce Department, which indicated that prices rose 2.3% in May compared with a year ago, up from 2.1% in April.

Core inflation — which excludes the more volatile food and energy categories — rose 2.7% from a year earlier, an increase from 2.5% the previous month. These figures will likely factor into the Federal Reserve’s decisions regarding interest rate cuts, which market participants have been anticipating.

Other Notable Market Movers

While Nike dominated headlines with its earnings report, several other stocks made significant moves at today’s market open:

Tesla (TSLA) shares faced pressure following reports that a top aide to CEO Elon Musk has left the company. This comes after news earlier this week that Tesla’s EU sales fell in May for the fifth straight month.

Technology stocks continued their strong performance, with AI chip giant Nvidia (NVDA) building on yesterday’s 4% gain that pushed it to a record high. Other tech leaders like Alphabet (GOOGL), Microsoft (MSFT), and Apple (AAPL) posted modest gains at the opening bell.

Looking Ahead: Key Market Events

Market participants are now focusing on several important catalysts over the next two to three weeks. Deutsche Bank macro strategist Henry Allen noted, “The first is the US tax bill, which is currently working its way through the Senate, and the administration is trying to get it passed by Independence Day on July 4.”

“The focus is set to swiftly turn back to tariffs, as the 90-day extension to the reciprocal tariffs ends in less than two weeks’ time on July 9,” Allen added. “As it stands, it’s still unclear what will happen at that point, although several countries remain in negotiations with the U.S.”

Investors will also be watching for additional corporate earnings reports in the coming weeks, as well as further developments in the Middle East, where a ceasefire between Iran and Israel appears to be holding despite occasional violations. The stabilizing geopolitical situation has contributed to the recent market rally and helped push oil prices lower.

As markets continue to climb to new heights at today’s market open, analysts remain cautiously optimistic but warn that volatility could return if trade negotiations falter or inflation continues to accelerate beyond expectations.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. We are not financial professionals. The authors and/or site operators may hold positions in the companies or assets mentioned. Always do your own research before making financial decisions.