New York, June 27 EST: Wall Street closed the week with fresh highs for both the S&P 500 and Nasdaq, as investors rotated back into tech and growth stocks, betting on falling rates and still-strong earnings from the biggest names in AI.
The S&P 500 climbed to 6,178.80, breaking above its February peak. The Nasdaq Composite ended at 20,299.72, capping a 0.54% gain and putting some distance between itself and the levels where it stalled late last year.
It was the kind of rally built less on euphoria than on compounding conviction — that AI demand is holding up, the Fed may soon blink, and for now, geopolitical shocks are contained.
ETF Flows Echo the Optimism
Both SPY and QQQ, the most-watched ETFs tracking the S&P and Nasdaq respectively, mirrored the broader gains. SPY closed at $612.32 and QQQ at $546.10, with steady volume and minimal volatility through the session.
No dramatic shifts. Just firm hands staying long — and more capital creeping back in.
AI’s Grip on the Narrative Is Firm
Nvidia gained again — up 1.4% — as it edged toward a $4 trillion valuation. Micron‘s solid guidance reinforced the idea that AI infrastructure demand isn’t just theoretical anymore. AMD rose 1.6%. Meta and Amazon were also higher, though the moves were measured.
For now, the market is treating AI not as hype but as a durable growth engine — especially for the companies building the picks and shovels.
Fed Signals Point to a Turn
The softer tone from the Fed this week helped, too. With personal consumption data cooling in May and several officials hinting they’re open to easing if inflation holds, the market now sees a 72% probability of a rate cut by September. There’s even a slim — but rising — chance of one in July.
Investors are adjusting portfolios accordingly. High multiple stocks are back in favor. Yield-sensitive sectors, less so.
If rate cuts arrive on time, the positioning will look smart. If they don’t, investors may have moved too early — again.
Global Tensions Easing, for Now
News that China and the U.S. are working on rare-earth trade frameworks added to the tailwind. The Israel–Iran ceasefire helped dial down Middle East risk. None of this rewrites the geopolitical script, but it lowers the volume enough for markets to focus elsewhere.
Technicals and Tape
Since the April tariff-driven pullback, the S&P 500 is up 23.5%. The Nasdaq has surged 32%. For the year, the S&P is tracking a 5% gain; the Dow is lagging behind at just under 3%.
Market pros are watching whether the Nasdaq can consistently hold above 20,173.89 — a level that would mark a definitive break from last year’s bear territory.
What to Watch Next
- Earnings season is around the corner. The margin story — especially in big tech — will be key.
- More clarity on Fed appointments could shift the tone on policy.
- Any follow-through on U.S.–China trade talks or fresh tariff threats will test the current calm.
The Read
This isn’t a market running on fumes. It’s one driven by solid data, improving signals, and real capital flows into names with pricing power and global scale. That doesn’t mean there’s no risk — but it does mean investors aren’t chasing shadows. They’re placing smart bets.
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A Wall Street veteran turned investigative journalist, Marcus brings over two decades of financial insight into boardrooms, IPOs, corporate chess games, and economic undercurrents. Known for asking uncomfortable questions in comfortable suits.
