Wall Street hits record highs after turbulent months

NEW YORK (Reuters) – The S&P 500 and Nasdaq Composite reached all-time highs at the opening bell on Friday, bouncing back from a turbulent period sparked by U.S. President Donald Trump’s trade policies based on tariffs.

The U.S. benchmark stock index rose 0.68% to 6,182.7 points, surpassing the previous peak of 6,147.43 reached on February 19, while the Nasdaq went up 0.54%, to 20,274.8, also above its December 16 high of 20,204.58.

The indexes’ records show a shift in investors’ sentiment, amid hopes of interest rate cuts, a U.S.-brokered ceasefire between Israel and Iran, tamed prices and trade deals.

Days after Trump’s tariffs announcement on April 2, during the so-called “Liberation Day,” the Nasdaq tumbled 26.7% from its previous peak, entering a bear market.

COMMENTS:

JAMES ST. AUBIN, CHIEF INVESTMENT OFFICER, OCEAN PARK ASSET MANAGEMENT, SANTA MONICA, CALIFORNIA:

“It’s a continuation of this monster rally since early April. It’s been quite an improbable comeback, and it continues, assuming that the tariff controversy is no longer a major issue in the psyche of the market.”

“We’re starting to see earnings estimates for the next 12 months on the rise again after taking a little bit of a dip and that’s what the market is buying into.”

“The market assumption is that tariffs will be a very manageable issue.”

MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NEW YORK:

“What we’re really witnessing this week is sort of the removal of some of the stumbling blocks that have been placed in the middle of the road. We’ve had all this trade issues that are still up in the air and we had the big overhang of what was going on in the Middle East.”

PETER TUZ, PRESIDENT, CHASE INVESTMENT COUNSEL, CHARLOTTESVILLE, VIRGINIA:

“Given the uncertainties in the world at the moment, I am surprised. However, one can make the case that the uncertainties are diminishing as the year progresses and that has made people more optimistic about the future.”

“For a long while this year, we were worried about tariffs. Due to the various negotiations, they don’t seem to be as much of a worry as they were a few months ago.”

“Instead of the Middle East becoming a bigger problem as the bombings occurred, people are coming to think that this is a problem that’s off the table now. Inflation under control, doesn’t seem like the tariffs have pushed anything up yet. The economy is OK. Seems like there is plenty of money out there to buy things. So why not make an all-time high?”