S&P 500 closes above 6,400 for the first time in history, up 33% from April 2025 bottom.

S&P 500 closes above 6,400 for the first time in history, up 33% from April 2025 bottom.

The S&P 500 index closed above 6,400 for the first time in history on Tuesday, July 1, 2025, marking a significant milestone in the stock market's recovery. This achievement comes after a broad-based rally fueled by fresh inflation data and increased expectations of a Federal Reserve (Fed) rate cut in September [1].

The Dow Jones Industrial Average (^DJI) rose by about 1.1% or nearly 500 points, while the S&P 500 (^GSPC) and tech-heavy Nasdaq (^IXIC) both gained around 1.1% and 1.4%, respectively. Both the S&P 500 and the Nasdaq Composite closed at record levels, reflecting strong investor confidence [1][2].

The latest data from the Bureau of Labor Statistics showed that "core" inflation, which excludes volatile food and energy costs, rose 3.1% over the past year in July, ahead of June's 2.9% increase. However, on a headline basis, the Consumer Price Index (CPI) increased 2.7% year over year, matching June and coming in softer than economists' expectations of a 2.8% rise [1][2].

The inflation report sparked a surge in bets on a Fed rate cut in September, with around 94% of traders expecting this outcome, according to the CME Group. The report was the first major piece of economic data released by the Bureau of Labor Statistics after Erika McEntarfer's resignation as commissioner [1][2].

Intel (INTC) stock gained over 5% after CEO Lip-Bu Tan met with President Trump, who had called for Tan's resignation just last week. Trump praised Tan's "success and rise" in a post on Truth Social [1][2].

Investors will receive two more economic pulse checks later this week with the release of the Producer Price Index on Thursday and retail sales data on Friday. The stock market's performance will continue to be influenced by these economic indicators [1][2].

References:
[1] https://finance.yahoo.com/news/live/stock-market-today-sp-500-nasdaq-pace-for-record-closes-as-fed-rate-cut-bets-jump-after-cpi-inflation-report-133543310.html
[2] https://ca.finance.yahoo.com/news/stock-market-today-sp-500-closes-above-6400-for-first-time-as-rate-cut-bets-jump-after-cpi-inflation-report-200630619.html