S&P and NASDAQ close near record highs

The S&P 500 and Nasdaq Composite closed just below their all-time highs, driven by gains in shares of technology and financial companies. The stock market was hit hard this spring after President Trump announced harsh tariffs, but it has boomeranged back near new highs as investors have grown more sanguine about the risk of a debilitating trade war.

JPMorgan Chase stock hit a new intraday peak and was on track to close with a market capitalization above $800 billion for the first time. Amazon.com and Goldman Sachs Group were also among the biggest gainers.

The dollar weakened further after The Wall Street Journal said Trump was considering naming his pick to succeed Federal Reserve Chair Jerome Powell early. The new chair wouldn’t take office until May.

Announcing the pick this summer or fall would be far earlier than usual and could allow the chair-in-waiting to influence expectations about the likely rate path.

Two Fed policymakers, both Trump appointees, have said in recent days they would consider a rate cut in July, breaking ranks with Powell’s wait-and-see stance, and adding to pressure on the dollar. Markets are now pricing in a one-on-four chance of rate cut next month, up from 12.5% a week ago, according to CME.

“Media reports that Trump is considering an early appointment for the next Fed chairman are further bolstering dovish bets,” ING strategist Francesco Pesole said. The WSJ Dollar Index has fallen about 1.6% this week, putting it on track to settle at its lowest level since 2023. Easing geopolitical risks, following the Israel-Iran cease-fire, are also pushing the greenback lower, ING said.

This is sure to be received as welcome news by the Trump administration, eager to show that their policies are good for ordinary Americans, and for the stock market in general.