U.S. Stocks Keep Scaling Higher Despite War, Tariffs and Federal Debt Headwinds

Barry Adams
26 Jun, 2025
New York City

Wall Street indexes retained upward bias despite looming global trade uncertainties and geopolitical tensions. 

The S&P 500 index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2% as investors reassessed the interest rate outlook. 

The dollar index declined to 97.39 on Thursday and fell to a low not seen since February 2022, amid growing expectations that the Federal Reserve may cut interest rates sooner than previously anticipated. 

Crude oil prices declined and fell below the levels seen on June 12, when Israel launched its wave of missile attacks on Iran's nuclear infrastructure and military leaders.

 

First Quarter GDP Contraction Deeper Than Previously Estimated

Closer to home, first-quarter gross domestic product was deeper than previously estimated, according to the latest update from the U.S. Commerce Department.

The GDP contraction was revised to a 0.5% annual pace from the previous estimate of 0.2%, driven by the downward revisions in consumer spending and exports offset by a smaller improvement in imports. 

 

Volatile New Durable Goods Orders Surged in May

New orders for manufactured goods soared 16.4% from the previous month to $343.6 billion in May, the largest increase since July 2014, following a revised 6.6% decrease in April, the U.S. Census Bureau reported Thursday.

Transportation equipment led the rebound with a surge of 48.3%, driven primarily by the 231% increase in nondefense aircraft and parts.

Meanwhile, nondefense capital goods excluding volatile aircraft, a proxy for business spending, advanced 1.7% in May, following a revised 1.4% increase in April.

 

Continuing Jobless Claims Signal Rising Hurdles for Jobseekers

U.S. initial jobless claims eased to 236,000 in the week ending June 21, a decline of 10,000 from the previous week, according to a weekly update from the U.S. Department of Labor. 

Continuing claims, which lag by one week, increased by 37,000 to 1.97 million and advanced to the highest since November 2021, signaling job seekers are struggling to find new jobs.

On the earnings front, investors reviewed the latest updates from Micron Technology, Walgreens Boots Alliance, and H.B. Fuller. Nike is scheduled to release earnings after the close of Thursday's regular trading session.

 

Commodities, Currencies, Indexes, Yields

The S&P 500 index increased 0.3% to 6,110.43, the Nasdaq Composite edged up 0.1% to 20,001.56, and the Russell 2000 index advanced 0.4% to 2,145.45.

The yield on 2-year Treasury notes edged lower to 3.75%, 10-year Treasury notes decreased to 4.28%, and 30-year Treasury bonds declined to 4.84%.

WTI crude oil increased $0.60 to $65.52 a barrel, and natural gas prices edged lower by $0.03 to $3.53 a thermal unit.

Gold decreased by $10.42 to $3,322.58 an ounce, and silver edged up by $0.20 to $36.46.

The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.38 to 97.30 and traded at the lowest level since April 2022.

 

U.S. Stock Movers 

H.B. Fuller Company soared 10.5% to $61.82 after the adhesive maker reported sharply higher adjusted earnings per share of $1.18. 

Micron Technology Inc. advanced 1.9% to $129.65 after the memory and storage products maker reported better-than-expected results in the fiscal third quarter ending on May 29. 

Revenue edged up to $9.30 billion from $6.81 billion, net income surged to $1.88 billion from $332 million, and diluted earnings per share rose to $1.68 from 30 cents a year ago.

Nike Inc. jumped 0.4% to $61.10 ahead of the athletic shoemaker's quarterly results after the close of regular trading hours. 

Walgreens Boots Alliance Inc. inched up 0.2% to $11.33 after the pharmacy retailer reported better-than-expected results in the fiscal third quarter ending in May. 

Sales edged up to $38.99 billion from $36.35 billion, net income swung to a loss of $175 million from a profit of $344 million, and diluted earnings per share swung to a loss of 20 cents from a profit of 40 cents a year ago.