U.S. stock markets closed broadly higher on Thursday, buoyed by geopolitical calm following the sustained ceasefire between Israel and Iran, along with a wave of economic signals supporting the Federal Reserve’s case for potential rate cuts later this year.
The Nasdaq Composite rose 1%, registering its highest daily close so far this year, while the Nasdaq 100 climbed 0.9%, closing above 22,400 points for the first time in history. The Dow Jones Industrial Average gained 0.9%, or nearly 400 points, reaching its highest level in four months. The S&P 500 advanced 0.8%, approaching its all-time high from February 19.
Meanwhile, the CBOE Volatility Index (VIX)—Wall Street’s so-called "fear gauge"—fell for the fifth consecutive session, dropping another 1%, signaling a decline in market anxiety.
Investor sentiment was lifted after San Francisco Fed President Mary Daly suggested that the limited economic impact of recent tariffs could reinforce the case for an interest rate cut this fall. Her remarks followed two days of testimony from Fed Chair Jerome Powell, who reiterated the central bank’s patient stance and emphasized close monitoring of trade-related economic effects.
U.S. banking giants led the rally, with JPMorgan Chase shares jumping 1.7%, hitting a record high. Goldman Sachs also posted a 2.6% gain, closing at a new all-time high.
The surge followed the Federal Reserve’s proposal to ease leverage ratio requirements, which would lower the capital banks are required to hold against relatively low-risk assets.
Mining Stocks Rally on Copper Price Spike
Mining stocks also saw a strong surge, supported by a rally in copper prices, which hit a three-month high on rising U.S. demand ahead of potential new tariffs. Shares of Southern Copper soared 8% to their highest level in over six months, while Freeport-McMoRan jumped 7%, marking its best level in nearly eight months.
The robust performance of both financials and materials contributed to the broader strength in U.S. equities, reinforcing optimism about economic resilience amid ongoing global uncertainty.
Core Scientific shares
Core Scientific shares soared by 33% on Thursday, June 26, after a report by The Wall Street Journal revealed that CoreWeave, a leading AI infrastructure company, is in advanced discussions to acquire the Bitcoin mining and hosting firm.
Trading in Core Scientific’s stock was briefly halted following the report, before resuming with strong momentum. The surge marks the company’s second-largest single-day gain since it returned to the Nasdaq in January 2024 after completing a major restructuring.
A Rebound Story Fueled by AI
The company’s biggest daily gain occurred earlier in June, when shares jumped 40% amid news of a significant AI infrastructure expansion involving CoreWeave. The potential acquisition would represent a deepening of a strategic alliance between the two firms, which already includes multi-billion-dollar contractual commitments.
Source: Reuters
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