On June 25, 2025, US stocks displayed a mixed performance as President Trump announced the Israel-Iran conflict appears to be "over" for now. Meanwhile, Federal Reserve Chair Jerome Powell emphasized that the central bank is still assessing the impact of Trump's tariffs before making decisions regarding rate cuts.
The Nasdaq Composite (^IXIC) climbed approximately 0.3%, largely influenced by a 4% rise in Nvidia (NVDA) stock, which reached a record closing price. The S&P 500 (^GSPC) neared its all-time highs but ultimately ended the day virtually flat, while the Dow Jones Industrial Average (^DJI) slipped about 0.3%, losing just over 100 points.
The stock market experienced some volatility during Powell's second day of testimony before the Senate Banking Committee. His exchanges with Republican senators, particularly the pressure from Trump for rate cuts, contributed to the market's fluctuations.
Powell reiterated that inflation due to tariffs remains uncertain, stating, "There will be some inflation from tariffs coming, not yet, but over the course of the coming months." His previous day’s testimony, which signaled possible rate cuts, was well-received, setting the stage for the upcoming Personal Consumption Expenditures (PCE) report scheduled for release this Friday.
Nvidia’s shares surged by over 4%, closing above $154 and outpacing the previous record high of $149.43 set on January 6. Loop Capital analyst Ananda Baruah boosted Nvidia's price target to $250, a projection indicating the chipmaker’s market cap could escalate from $3.6 trillion to $6 trillion due to its dominant position in the critical tech sector.
Baruah acknowledged the potential for Nvidia's fundamentals to continue amplifying and anticipated the market for AI chips to reach $2 trillion by 2028.
Across sectors, the Technology sector (XLK) was the only notable gainer on Wednesday, enhancing its recent strong performance. Despite mixed signals in the market, the S&P 500 remained just below its record levels, leading many analysts to proclaim that stocks could still have further room to climb.
Although many stocks are nearing high valuations, analysts argue that high valuations do not inherently signal an imminent correction. Confidence and market dynamics can sustain elevated valuations longer than expected.
In specific stocks, Campbell Soup Company (CPB) saw over a 2% drop, reaching its lowest level since June 2012, following an announcement about declining earnings and a cut in its growth outlook. Conversely, BlackBerry (BB) shares jumped 10% after exceeding revenue expectations and raising its outlook for fiscal year 2026.
Meanwhile, General Mills (GIS) reported weaker-than-expected profits due to reduced consumer spending on snacks, leading its stock to decline by over 3%.
As of today, US investors are keenly observing the developments related to interest rates, inflation, and the overall economic landscape as Trump’s administration navigates its tariff policies. With the current trajectory of the stock market highlighting resilience amid geopolitical tensions, investors remain cautiously optimistic about potential bullish signals.