STORY: Wall Street extended its rally on Friday, sending the S&P 500 and Nasdaq to all-time closing highs – with each adding half a percent – while the Dow climbed one percent.
The rally confirmed a bull market for the Nasdaq since its post-“Liberation Day” trough on April 8.
Stocks were boosted by trade deal hopes while economic data helped solidify expectations for rate cuts later this year from the Federal Reserve.
Mike Mussio, president of FBB Capital Partners, said second-quarter earnings results will be key to justifying the high stock valuations of S&P 500 companies.
“It's nice that we've come back to 6100, but what hasn't really changed there is the earnings picture hasn't changed all that much. So 6100 this time around from six months ago or five months ago, you know, is not that much cheaper. If the earnings story improves, then you could have a cheaper 6100 on the S&P and that gets, that could be compelling.”
A report from the Commerce Department on Friday showed consumer income and spending unexpectedly contracted in May. And while the impact of tariffs on consumer prices has not yet been fully realized, inflation continues to hover above the Fed's 2% annual inflation target.
Stocks on the move Friday included Nvidia, which rose close to 2%, edging near a $4 trillion market capitalization after reclaiming its position as the world's most valuable company.
And shares of Nike jumped more than 15% after forecasting a smaller-than-expected drop in first-quarter revenue. Shares of rivals Lululemon Athletica and Hoka-owner Deckers Outdoor also rose.
