American Stock Market Nears Record High
The American stock market is showing signs of an upward trajectory, nearly hitting a record high. The S&P 500 has seen an increase of 0.7% in afternoon dealings, making it not more than 0.2% away from its record peak set in February. Adding to this, the Dow Jones Industrial Average rose 349 points- a 0.8% growth- as of 1:05 p.m. Eastern time, and the Nasdaq composite also saw a 0.8% rise.
The gain in the market was partially due to McCormick, the reputable purveyor of cooking spices. The company experienced a 5% surge after presenting a higher-than-projected profit report. McCormick’s projected profit for its entire fiscal year also exceeded the market’s initial estimates, which took into account strategies to balance the increased expenses resulting from the tariffs instituted by President Donald Trump.
Looking at the broader picture, the major contributors to the consistent rise of the market have been large technology stocks. Since the spring, when the S&P 500 suffered a 20% downslide due to tariff anxieties, these stocks have guided the market back on upward trend.
Within the tech sector, Nvidia, a renowned chip manufacturer and a key player in the artificial intelligence sphere, increased by 0.8%. This company holds the crown as the highest valued company in the U.S. stock market, after a monumental 61% boost since the market’s low point on April 8. This impressive performance greatly overshadows the 23% increase of the S&P 500 during the same period.
Another shining star in the AI arena is Super Micro Computer, whose shares grew 5.3%, making a total surge of more than 50% since the April 8 low. As significant contributors to the tech sector surge, these companies have demonstrated the burgeoning potential of artificial intelligence.
Meanwhile, Micron Technology, a seller of computer memory and data storage devices, saw volatile stock prices despite managing to surpass analyst expectations for profit and revenue in the recent quarter. The company’s future profit forecast for the current quarter also surpassed market predictions, but its stock ended up falling 1.8% recently.
Despite recent positive trajectories, lingering fears about Trump’s tariffs persist in Wall Street circles. These apprehensions began to bubble up following the president’s shocking tariff propositions in April, and whilst they have since died down, they have not completely vanished.
Doubts continue to hang over the size of the future tariffs, the potential damage they might inflict upon the economy, and their potential to cause inflation. Although the economy seems to be enduring these issues reasonably well with only a slow downturn, continued uncertainty is keeping everyone on their toes.
Recently, reports suggesting a relatively stable state of U.S. economy have emerged. One such report highlighted a higher-than-expected growth in orders for durable goods – items expected to last at least three years such as washing machines – over the last month.
A second report provided a potential glimmer of hope for the labor market, indicating a decrease in the number of U.S. workers filing for unemployment benefits in the last week. This can be viewed as an indicator of a decline in layoffs.
Interestingly, a third study revealed a more significant downturn in the U.S. economy during the initial quarter of 2025 than previously gauged. However, this downturn can be largely attributed to the distorted numbers resulting from U.S. companies rushing to secure foreign products in anticipation of the tariffs earlier this year.
Economists argue that these numbers, although a cause for concern, are misleading due to the earlier rush by companies to purchase foreign goods preemptively. As such, they anticipate a more accurate and optimistic overview of the economy’s performance in the forthcoming months.