U.S. equity markets closed at all-time highs on Friday, June 27, 2025, with the S&P 500 gaining 0.5% and the Nasdaq also setting a new record. The milestone marks a remarkable recovery from the market’s nearly 20% decline between February and April, driven by concerns over the Trump administration’s trade policies. The turnaround occurred in about half the typical recovery time, according to market analysts.
Key developments included a U.S.-China trade agreement that facilitated American access to rare earth minerals critical for manufacturing and microchips, although broader trade uncertainties persist with tariff negotiations set to expire in July. Inflation remains above the Fed’s 2% target at 2.3%, contributing to the central bank’s cautious stance on interest rate cuts despite expectations for at least two reductions before year-end. Read the full article.
Learn more about the global economic effects of Trump’s 2025 tariffs through this working paper from The Peterson Institute for International Economics (PIIE).