US Stock Market Hits Record Highs Amid Trade Tensions, Economic Uncertainty

The U.S. stock market closed the first half of 2025 with record highs, rebounding strongly after a sharp downturn triggered by President Donald Trump's announcement of sweeping tariffs in April. The S&P 500 and Nasdaq reached all-time highs, supported by easing trade tensions, including resumed negotiations with Canada following the cancellation of a digital services tax. Despite concerns such as a revised contraction in first-quarter GDP and a weaker dollar, the economy has demonstrated resilience with steady corporate earnings and a robust labor market. Market optimism is further fueled by expectations of potential rate cuts, tax incentives, and deregulation, even as some analysts highlight uneven performance among smaller stocks and key tech firms. Globally, the dollar's decline and shifting geopolitical dynamics have made European markets more attractive to investors. Overall, trade policy uncertainty remains a central theme influencing market movements through the first half of the year.