Nasdaq and S&P500: Robinhood, Coinbase, Broadcom Power Tech Rally

S&P 500 and Nasdaq Hit Record Highs as Trade Relief Lifts Tech

U.S. markets closed out the first half of 2025 on a high note, with the S&P 500 and Nasdaq each adding 0.5% to notch fresh record highs. The Dow gained 0.6%, capping a powerful rebound from April’s trade-driven selloff as easing U.S.-Canada tensions and Fed policy hopes lifted risk appetite. Strong June gains positioned markets favorably heading into the second half despite persistent policy and valuation concerns.

Can OPEC and Energy Rebound as Trade Eases Pressure on Tech?

Markets cheered Canada’s last-minute reversal of its Digital Services Tax, which had threatened U.S. tech giants like Amazon, Apple, and Meta with a 3% levy.

The cancellation restored momentum to tech stocks and allowed U.S.-Canada trade talks to resume, with investors betting on further de-escalation.

Energy, however, lagged, dropping 0.43% as traders maintained caution around cyclical sectors exposed to trade disruptions and weak global demand signals.

Is the Federal Reserve Staying Supportive Enough for Bulls?

The Fed remains a critical focus as traders price in 2–3 potential rate cuts for 2025 while the current target rate stands at 4.25%–4.5%.

Chair Powell has held a cautious stance under political pressure, reaffirming the Fed’s independence as inflation data remains mixed.

Treasury yields reflected this wait-and-see mood, with the 10-year at 4.29% and the 2-year at 3.89%, as the market balances potential rate cuts against inflation concerns driven by trade policy.

Which Stocks Are Leading in This Rally?

Robinhood surged 10.5% after Bank of America lifted its target, citing crypto expansion in Europe.

Coinbase hit a 52-week high at $359.04, while Broadcom, Microsoft, Netflix, and Goldman Sachs all printed record highs.

Aviation stocks, including Joby Aviation and Archer Aviation, soared over 10% following new U.S. drone initiatives, while Rocket Lab advanced on related optimism, illustrating pockets of aggressive buying in tech, crypto, and aerospace themes.

What’s the Market Outlook for July?

Investors will turn to Tuesday’s JOLTS job openings report and the ISM Manufacturing Index for signs of labor and industrial sector health.

These data points will guide expectations for Fed policy as traders assess how trade de-escalation and global uncertainties may impact the rate path.

With markets heading into the July 4 holiday, analysts remain cautiously constructive but highlight risks from upcoming EU tariff deadlines and high valuations, with the S&P 500 trading near dot-com era peaks at 23.3 times earnings.

Monday’s strong finish positions the market for continued momentum, but traders should expect choppiness as policy signals and upcoming data releases drive near-term direction.

More Information in our Economic Calendar.