US stock rally stalls near all-time highs.
US stocks wavered on Wednesday as mixed economic signals and geopolitical tensions kept investors on edge. The S&P 500 flirted with its all-time high but ended the trading day nearly flat, while the Nasdaq Composite climbed about 0.3%, boosted by Nvidia’s 4% rise [2]. The Dow Jones slipped about 0.3%, falling just over 100 points [2]. The market's resilience was highlighted by a 2% gain in Bharat Electronics (BEL) after it was added to the Sensex, with analysts eyeing a 30% upside [3].
The S&P 500 closed just 0.85% away from a new record high on Tuesday, a remarkable turnaround from its near-bear market status two months ago [4]. The index has been buoyed by a ceasefire between Israel and Iran, which has eased geopolitical tensions [1]. However, investors are closely watching Fed Chair Jerome Powell's testimony before the Senate Banking Committee, where he emphasized that the central bank is still studying the effects of Trump's tariffs before deciding on rate cuts [2].
Powell’s remarks set the stage for Friday’s closely watched release of the Fed’s preferred inflation measure, the Personal Consumption Expenditures (PCE) report. Economists expect annual "core" PCE to have ticked up in May, but scrutiny will also fall on any signs that Trump's tariffs pushed prices higher [2]. The market's resiliency has been remarkable this year, according to Joe Terranova of Virtus Investment Partners on CNBC [1].
With inflation trending toward the 2% target and signs of softening labor demand, markets are braced for potential policy shifts. Traders will watch inflation data, housing market trends, and earnings surprises to gauge the future path of monetary policy [1].
References:
[1] https://www.fingerlakes1.com/2025/06/25/stock-market-today-june-25-2025/
[2] https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-rally-stalls-with-fresh-records-in-sight-225441558.html
[3] https://www.financialexpress.com/market/bharat-electronics-surges-on-sensex-inclusion-3-reasons-why-nuvama-sees-30-upside-potential-3889489/
[4] https://www.cnn.com/2025/06/25/investing/stock-market-record-dow
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