Wall Street Hits Record Highs: But Is the Rally Sustainable?

The U.S. stock markets roared last week, with the S&P 500 and Nasdaq hitting record highs. Tech stocks continued to dominate the rally, fueled by strong economic data and expectations that the Federal Reserve may begin rate cuts by late 2025. Investor optimism was also boosted by positive jobs data in June, signaling that the U.S. economy remains resilient despite global trade jitters.

However, the rally isn’t without risks. The looming 90-day tariff window—announced by Trump earlier this year—ends on July 9. If the U.S. imposes broad-based tariffs as hinted, it could lead to retaliatory measures from key trading partners like the EU and China. Wall Street’s current optimism may face a harsh correction if global trade tensions flare up again.