Full Market Coverage HereMarket Indexes Show Strength as Ceasefire Takes Hold
Major U.S. stock indexes continued their upward momentum on Wednesday, June 25, 2025, as investors welcomed the fragile truce between Israel and Iran. The S&P 500 edged higher by 0.2% in early trading, sitting less than 1% below its all-time high reached in February. The Dow Jones Industrial Average slipped marginally by 0.1%, while the tech-heavy Nasdaq Composite gained 0.1%, building on yesterday’s strong performance.
The Nasdaq 100, a subset of the Nasdaq Composite, reached a record closing high on Tuesday, marking its first all-time high since February. The index has rallied more than 15% this quarter, which would represent its biggest quarterly gain since 2023 if maintained through month-end.
“The market continues to drive higher with remarkable resiliency,” said Joe Terranova, senior managing director for Virtus Investment Partners. “This is one of the most resilient markets that I have ever witnessed.”
Ceasefire Agreement Boosts Market Sentiment
The ceasefire agreement between Israel and Iran, announced by President Donald Trump earlier this week, has significantly improved market sentiment despite some reports of violations. Investors view the cease-fire rhetoric as a sign of de-escalating tensions in the region.
“The bulls are out of their bucking shoots,” said Greg Bassuk, chief executive officer at AXS Investments. “The cease-fire really is adding fire to the stock market rally. We believe investors are wagering that calm in the Middle East is really a boon for stocks even as it weighs down bonds and oil prices.”
Oil prices have cratered over the past two days, with West Texas Intermediate crude futures dropping 6% on Tuesday alone. These declines have helped lift stocks as investors worry less about potential supply disruptions.
Key Earnings Reports and Economic Data
Several important earnings reports are scheduled for release today. Paychex (PAYX) is reporting for the quarter ending May 31, with analysts expecting earnings per share of $1.18, representing a 5.36% increase compared to the same quarter last year.
General Mills (GIS) is also reporting today, with consensus earnings per share forecast at $0.71, representing a 29.70% decrease compared to the same quarter last year.
Other companies reporting include Winnebago Industries (WGO), with expected earnings per share of $0.79, and Daktronics (DAKT), with analysts forecasting earnings per share of $0.18.
On the economic front, investors will be watching new home sales data due this morning. Federal Reserve Chair Jerome Powell is also scheduled to speak before the Senate Banking Committee today, where market participants will look for clues about the central bank’s future rate decisions.
Tech Stocks Lead the Market
Technology stocks continue to lead market gains, with the sector outperforming other segments of the S&P 500. Among the “Magnificent Seven” stocks, performance has been mixed in 2025, but several are showing strength in recent sessions.
Nvidia (NVDA) has rallied in recent weeks, trading well above its 50-day and 200-day moving averages. The company is up 5.5% year-to-date despite some volatility following its fiscal first-quarter earnings report in late May. CEO Jensen Huang has expressed confidence that President Trump will make the right decisions to support the U.S. AI industry.
Tesla (TSLA) shares have been volatile, currently trading around 40% below their all-time high set in December. The stock faced pressure earlier this week after Baird downgraded it from outperform to neutral. However, the company received a boost after launching its driverless robotaxi service in Austin, Texas over the weekend, with shares jumping more than 9% on Monday.
Apple (AAPL) has struggled in 2025, down 18.6% year-to-date, but has been attempting to move above its 50-day moving average in recent sessions. Meanwhile, Microsoft (MSFT) has performed better, up 11.6% this year after crushing Wall Street’s targets for its fiscal third quarter.
Alphabet (GOOGL) is down 8.3% year-to-date but has been gaining momentum as experts note the company is “firing on all cylinders across AI” with innovations like Gemini 2.5 Pro and Veo 3.
Market Breadth Improves
Market breadth has been improving, with advancing issues outnumbering decliners by a 3.27-to-1 ratio on the NYSE in Tuesday’s session. The S&P 500 posted 19 new 52-week highs and no new lows, while the Nasdaq saw 239 new highs and 56 new lows.
This broad participation in the market rally suggests that the current uptrend has solid foundations beyond just the largest technology companies. Airline stocks have gained altitude amid cooling Middle East tensions, with the S&P 1500 Airlines index advancing 2.4% on Tuesday.
Looking Ahead: Key Factors to Watch
As markets navigate the remainder of the week, investors will be closely monitoring several key factors. Federal Reserve Chair Powell’s testimony could provide insights into the central bank’s thinking on inflation, economic growth, and the potential timeline for interest rate cuts.
The fragile ceasefire in the Middle East remains a critical variable that could impact market sentiment and commodity prices. Any signs of escalation could quickly reverse recent gains, particularly in sectors sensitive to geopolitical tensions.
Corporate earnings will continue to influence individual stocks, with today’s reports potentially setting the tone for market sectors like consumer staples (General Mills) and business services (Paychex).
With the S&P 500 approaching its all-time high and the Nasdaq 100 already setting new records, market participants will be watching to see if this momentum can be sustained through the end of the quarter and into the second half of 2025.