Markets Hold Broad-Based Rally:
Stocks rallied across the board last week as investor optimism grew over the potential for a sustained Middle East ceasefire, hitting new record highs along the way.
The S&P 500 Index rose 3.44%, while the Nasdaq Composite Index added 4.25%. The Dow Jones Industrial Average advanced 3.82%. The MSCI EAFE Index, which tracks developed overseas stock markets, increased 3.04%.1,2
Source: Bloomberg Finance, L.P. (Performance data normalized 6/20/25 = 0)
Stocks Push Higher
Last week opened with a rally powered by news of a tamer-than-expected escalation of tensions in the Middle East. Stocks continued their rise after this week’s ceasefire agreement, although Wall Street appeared concerned about whether the truce would remain in place.3,4
Sentiment brightened after the White House played down the approaching July 8 tariff deadlines. Solid corporate earnings, a still-strong labor market, and a recovery in artificial intelligence-related stocks provided some underlying strength to the rally.5
As the week wrapped up, the S&P 500 hit its first new high since February—it marked the fastest-ever recovery from a 15% decline for the broad-market index. The tech-heavy Nasdaq Composite also closed at an all-time high.6,7
Sources: U.S. Department of the Treasury, Board of Governors of the Federal Reserve System, Charles Schwab
Economic Data Helped, Too
While trade and Middle East updates powered most of the markets’ rise last week, a few economic bits of news also contributed to the week-long rally. For example, consumer sentiment climbed 16% in May—its first increase in six months.8,9
“The improvement was broad-based across numerous facets of the economy, with expectations for personal finances and business conditions climbing about 20% or more,” the University of Michigan said in a statement.
This Week: Key Economic Data
Source: Bloomberg Finance L.P.
This Week: Companies Reporting Earnings
Source: EarningsWhispers
Author
Gary Aiken
Chief Investment Officer
Concord Asset Management
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Footnotes and Sources
1WSJ.com, June 27, 2025
2Investing.com, June 27, 2025
3CNBC.com, June 23, 2025
4CNBC.com, June 24, 2025
5WSJ.com, June 18, 2025
6WSJ.com, June 27, 2025
7WSJ.com, June 27, 2025
8WSJ.com, June 24, 2025
9UMich.edu, June 27, 2025
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