Stock Market Surges as Nasdaq and S&P 500 Break Records on Trade, Tax Tailwinds

S&P 500, NASDAQ, DOW CLIMB AS TARIFF RISK FADES AND TAX CUT HOPES IGNITE RALLY

Wall Street Futures Power Higher: Nasdaq (NQ=F), S&P 500 (ES=F), Dow Jones (YM=F)

Wall Street’s momentum accelerated at the open this week, with investors digesting a wave of bullish signals: the softening stance on digital service taxes, easing trade tensions, and the political push for one of the largest fiscal packages in modern U.S. history. Nasdaq 100 futures (NQ=F) surged 0.6% to 22,883.25, while E-mini S&P 500 (ES=F) added 0.41% to 6,249.25, both notching new highs. The Dow Jones futures (YM=F) rose 0.56% to 44,374.00, boosted by rotational flows into industrial and financial names. The coordinated optimism reflects investor belief that both the Trump tax plan and July 9 tariff deadline could rewire the global trade map without triggering inflationary shocks.

Record Closes on the S&P 500 (^GSPC) and Nasdaq (^IXIC); Dow (^DJI) Still Lags

The S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) pushed further into uncharted territory, with the Nasdaq closing above 16,300 and the S&P 500 above 6,180 for the first time. However, the Dow Jones (^DJI), which added 400+ points on Friday, still sits 1,250 points below its historical high, reflecting a hesitancy in traditional value sectors. The dovish tilt from the Fed is growing louder: CME FedWatch now sees a 93% probability of a rate cut by September, and a 21.2% chance in July, up from just 14.5% last week. The data-driven narrative ahead of the July 4th jobs report could anchor these expectations further.

Oracle (ORCL) Surges to $224.90 as Cloud Ambitions Broaden

Oracle (ORCL) exploded 6.95% higher to $224.90 after revealing blockbuster cloud contracts—including one that will yield over $30 billion annually by FY28. CEO Safra Catz announced in an internal address that the company’s multicloud database business is growing at over 100% YoY, underscoring Oracle’s deep entrenchment in enterprise AI infrastructure. The company’s stalled $500B Stargate initiative with OpenAI (OPAI.PVT) and SoftBank (SFTBY) has not hindered investor appetite, as Oracle’s infrastructure scale and client pipeline remain unmatched.

Disney (DIS) Hits $123.77 on Cruise Rebound and Streaming Tailwinds

Disney (DIS) advanced 1.19% to $123.77, riding momentum from a Jefferies upgrade to “Buy” with a $144 price target, implying 18% upside. Analysts highlight four levers: (1) cruise business growth topping $1 billion in FY26; (2) margin improvement in DTC from 0% in FY24 to over 13% in FY28; (3) a rich content pipeline led by Zootopia 2, Avatar 3, and the highly anticipated ESPN direct streaming rollout; (4) macro stability in the parks segment amid early signs of consumer spending resilience.

Palantir (PLTR), Hewlett Packard (HPE), Juniper (JNPR) Surge on DOJ Deal Clearance

Palantir (PLTR) climbed 4.60% to $136.75, clawing back part of Friday’s 9.4% drop, now up 90% YTD, after rebalance-driven selling. Meanwhile, Hewlett Packard Enterprise (HPE) rallied 13.18% to $20.85, and Juniper Networks (JNPR) soared 8.44%, as the DOJ greenlit HPE’s $14 billion Juniper acquisition. The merger deepens HPE’s exposure to AI networking infrastructure—an area that investors see as a secular growth zone.

INmune Bio (INMB) Crashes 62% After Alzheimer’s Study Failure

Shares of INmune Bio (INMB) were decimated, falling 62.10% to $2.02, after its Alzheimer’s candidate XPro failed to improve cognitive function in mid-stage trials. The experimental TNF-blocking therapy, which aimed to reduce neuroinflammation without dampening immune response, delivered no statistical benefit, triggering a broad sell-off. Confidence in the firm’s CNS pipeline has evaporated, with short interest spiking and multiple brokerages issuing immediate downgrades.

Solar Sector Split: Senate Tax Bill Rocks Chinese Supply Chains, Boosts First Solar (FSLR)

Clean energy investors digested sweeping changes to the Senate’s new budget proposal, which not only accelerates the expiration of wind and solar tax credits to 2027, but imposes fresh taxes on projects using Chinese materials. NextEra Energy (NEE) dropped 4.02% to $68.07, and Enphase Energy (ENPH) lost 4.55% to $39.02, while First Solar (FSLR) rose 6.68% to $162.30 and Sunrun (RUN) soared 8.54% to $8.07. Domestic-focused manufacturers like GE Vernova (GEV) also edged 0.37% higher to $521.58, as markets recalibrate around U.S.-favored supply chains.

Bitcoin (BTC-USD) at $107,862 As Altcoins Lose $300B in Market Value

Bitcoin (BTC-USD) continues to dominate digital assets, trading at $107,862, now comprising 64% of total crypto market cap—the highest since early 2021. The altcoin sector has seen a systemic collapse, shedding over $300 billion YTD as institutional interest remains firmly anchored in BTC. Traders increasingly describe the broader crypto landscape as a “digital wasteland,” where non-Bitcoin assets face existential pressure due to regulatory uncertainty and fading real-world adoption.

Gold Gains, Oil Declines as Investors Weigh Fiscal Risks and OPEC Policy

Gold (GC=F) ticked up 0.3% to $3,292.00, supported by Treasury yield softness and deficit concerns surrounding Trump’s tax bill. Meanwhile, WTI crude (CL=F) fell 0.50% to $65.19, and Brent crude (BZ=F) dropped 0.97% to $67.11. OPEC+ confirmed it will increase output in August, easing supply concerns. The post-ceasefire unwind in Middle East tensions has deflated the geopolitical premium that previously drove Brent above $80 per barrel.

European Markets Lead as China’s Housing Slumps and US Policy Uncertainty Mounts

The STOXX 600 (^STOXX) ended at 542.26, reflecting record outperformance versus U.S. indices in dollar terms for H1 2025. Capital rotation from U.S. assets is accelerating amid Trump’s tariff threat and a widening deficit. Meanwhile, China’s new-home sales fell 23% YoY to $47.3B, continuing a four-year housing market contraction. Although June showed a 14.7% MoM rebound, macro signals remain mixed, prompting traders to reassess stimulus expectations. Europe benefits from fiscal expansion and a dovish ECB, which just reaffirmed its symmetric inflation target policy.

Watchlist: Key Market Movers and Events to Watch This Week

• June Non-Farm Payrolls Report (July 4, 8:30 AM ET): Market-moving data with direct impact on Fed policy stance.

• July 9 Reciprocal Tariff Deadline: Potential reimposition of sweeping tariffs if trade agreements aren't finalized.

• Senate Vote on Trump’s $4.5 Trillion Tax Cut Bill: Investor focus on amendments and deficit implications.

• Earnings Season Watchlist: Key early reporters expected next week, including financials and big tech.

Verdict: S&P 500 (ES=F) – BUY | Nasdaq 100 (NQ=F) – BUY | Dow Jones (YM=F) – HOLD
Oracle (ORCL) – BUY | Disney (DIS) – BUY | HPE – BUY | Palantir (PLTR) – HOLD | INMB – SELL
Bitcoin (BTC-USD) – HOLD | First Solar (FSLR) – BUY | Enphase (ENPH), NextEra (NEE) – SELL | Gold – BUY | Crude Oil – HOLD

That's TradingNEWS