Thursday saw a strong performance on Wall Street, propelling the S&P 500 close to a new record high. The index rose by 0.8% to reach 6,141.02, just 0.05% below its previous peak in February. The Dow Jones Industrial Average closed at 43,386.84, gaining 404 points (0.9%), and the Nasdaq Composite finished at 20,167.91 after a 1% increase.
The positive market sentiment was supported by earnings exceeding expectations and easing worries about the tariffs proposed by President Donald Trump. Although concerns about trade policies remain, recent economic data indicate strength, boosting investor confidence.
Corporate Standouts: McCormick, Nvidia, Super Micro Computer
McCormick & Company led the S&P 500 after reporting stronger-than-expected earnings and raising its full-year profit forecast. Shares of the spice maker surged 5.3% as the company highlighted efforts to mitigate rising tariff-related costs.
Among tech stocks, Nvidia added 0.5%, continuing its ascent as the most valuable publicly traded company in the U.S. Its shares have soared 61% since April 8, driven by surging investor enthusiasm for artificial intelligence. Super Micro Computer rose 5.7%, bringing its AI-fueled rally to 55% over the same period.
Micron Technology reported solid results and raised its outlook for the current quarter, citing AI-driven demand for memory products. Despite the strong fundamentals, the stock closed down 1% after a volatile trading session.
Economic Data Points to Mixed Momentum
Three key reports released Thursday painted a nuanced picture of the U.S. economy:
- Durable goods orders, including items like washing machines and heavy machinery, rose more than expected.
- Weekly jobless claims declined, suggesting labor market stability.
- GDP for Q1 2025 was revised lower, showing a larger-than-expected contraction. However, economists attributed the dip to front-loaded imports aimed at avoiding looming tariffs, expecting stronger performance ahead.
Bond Yields Retreat Amid Fed Speculation
Following the data, Treasury yields initially fluctuated before edging lower. The yield on the 10-year note slipped to 4.24% from 4.29%, while the two-year yield—closely tied to Fed rate expectations—dropped to 3.71% from 3.74%.
Markets were further stirred by a Wall Street Journal report suggesting that Trump could name a replacement for Federal Reserve Chair Jerome Powell earlier than expected, potentially undermining the Fed’s independence. The report raised concerns about inflation and the credibility of future monetary policy decisions.
Brian Jacobsen, Chief Economist at Annex Wealth Management, said the move “could be bad for inflation” if the new appointee prioritizes politics over policy. However, he added that the Fed’s broader committee structure could provide a check on any single voice.
Global Markets Mixed
Overseas markets showed varied performance. Japan’s Nikkei 225 climbed 1.6%, while South Korea’s Kospi dropped 0.9%. European indices also closed mixed as investors digested central bank commentary and regional data.
