NEW YORK (Reuters) – The S&P 500 and Nasdaq Composite reached all-time highs at the opening bell on Friday, bouncing back from a turbulent period sparked by U.S. President Donald Trump’s trade policies based on tariffs.
The U.S. benchmark stock index rose 0.68% to 6,182.7 points, surpassing the previous peak of 6,147.43 reached on February 19, while the Nasdaq went up 0.54%, to 20,274.8, also above its December 16 high of 20,204.58.
The indexes’ records show a shift in investors’ sentiment, amid hopes of interest rate cuts, a U.S.-brokered ceasefire between Israel and Iran, tamed prices and trade deals.
Days after Trump’s tariffs announcement on April 2, during the so-called “Liberation Day,” the Nasdaq tumbled 26.7% from its previous peak, entering a bear market.
COMMENTS:
JAMES ST. AUBIN, CHIEF INVESTMENT OFFICER, OCEAN PARK ASSET MANAGEMENT, SANTA MONICA, CALIFORNIA:
“It’s a continuation of this monster rally since early April. It’s been quite an improbable comeback, and it continues, assuming that the tariff controversy is no longer a major issue in the psyche of the market.”
“We’re starting to see earnings estimates for the next 12 months on the rise again after taking a little bit of a dip and that’s what the market is buying into.”
“The market assumption is that tariffs will be a very manageable issue.”
MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NEW YORK:
“What we’re really witnessing this week is sort of the removal of some of the stumbling blocks that have been placed in the middle of the road. We’ve had all this trade issues that are still up in the air and we had the big overhang of what was going on in the Middle East.”
PETER TUZ, PRESIDENT, CHASE INVESTMENT COUNSEL, CHARLOTTESVILLE, VIRGINIA:
“Given the uncertainties in the world at the moment, I am surprised. However, one can make the case that the uncertainties are diminishing as the year progresses and that has made people more optimistic about the future.”
“For a long while this year, we were worried about tariffs. Due to the various negotiations, they don’t seem to be as much of a worry as they were a few months ago.”
“Instead of the Middle East becoming a bigger problem as the bombings occurred, people are coming to think that this is a problem that’s off the table now. Inflation under control, doesn’t seem like the tariffs have pushed anything up yet. The economy is OK. Seems like there is plenty of money out there to buy things. So why not make an all-time high?”
ART HOGAN, CHIEF MARKET STRATEGIST, B RILEY WEALTH, BOSTON:
“The driver for that momentum clearly is the dissipation of concerns over the magnitude of tariffs. That was the biggest concern in the early April time frame and I think that headwind seems to be dissipating a bit.”
“The other piece of the puzzle clearly is getting in and out of that geopolitical shock in a short period of time with a fragile ceasefire that we have now with Israel and Iran has been another positive.”
“The third thing I think it’s that there are several members of the Federal Open Market Committee that are leaning into cutting rates in July versus September.”
ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER, DAKOTA WEALTH, FAIRFIELD, CONNECTICUT:
“Investors have regained confidence and have reassessed the situation with regards to tariffs and to how the president is handling the trade issue and that may be the concerns of tariffs leading to massive inflation and to a collapse of the economy won’t come to fruition.”
“Because of those realizations, investors have regained the confidence to step back into the market and bring back stocks to levels that we were at prior to all this trade (uncertainties).”
CAROL SCHLEIF, CHIEF MARKET STRATEGIST, BMO PRIVATE WEALTH, MINNEAPOLIS:
“The bottom line (of the indexes’ record highs) is: business doesn’t need 100% certainty. They just need directional clarity and they’re starting to get it. Underlying economics have been solid and, while consumers bear close watching, we suspect the narrative shift and business-friendly aspects of the “One Big Beautiful Bill” plus reduced regulation and amenable capital markets can revive at least some sidelined projects.”
(Reporting by the finance and markets team)
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