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- The Dow Jones Index rose 0.77% as investors welcomed tech gains and political progress.
- Bullish AI forecasts from Wedbush pushed top tech stocks like Nvidia and Microsoft higher.
- A steady June jobs report helped ease concerns about economic overheating.
- Trump’s $4.5 trillion tax bill advanced in the House, boosting hopes for fiscal stimulus.
U.S. equity markets wrapped up the trading week on a high note Thursday, with the Dow Jones Industrial Average rising 344.11 points, or 0.77%, to close at 44,828.50.
The rally came ahead of the Independence Day break, fueled by investor optimism surrounding technology stocks and renewed momentum behind President Donald Trump’s sweeping tax legislation.
Trading volumes were lighter due to the shortened holiday session, but the market’s tone was decidedly upbeat. Gains across the board sent all three major indices higher, with the Nasdaq Composite jumping 1.02% to 20,601.10 and the S&P 500 advancing 0.83% to 6,279.35.
Market breadth was firmly positive, as nearly 70% of NYSE-listed stocks posted gains, while more than 1,200 reached new 52-week highs.
Tech stocks carry momentum into second half
Driving much of the enthusiasm was a strong performance from the tech sector. Investors responded favorably to a bullish industry outlook from Wedbush Securities, which projected a robust second half of the year fueled by increased AI investment.
Analysts at the firm pointed to a multitrillion-dollar wave of enterprise and government spending as a transformative force for the tech landscape, highlighting companies like Nvidia, Meta, Microsoft, and Palantir as key beneficiaries.
Wedbush’s report suggested that AI-related infrastructure, cloud platforms, and software solutions were poised to reshape how businesses operate, offering significant growth potential for top tech firms. Microsoft and Nvidia were named as likely contenders to hit the $4 trillion market cap milestone in the coming months, adding to the sector’s growing appeal for institutional and retail investors alike.
Labor market offers a steady backdrop
In parallel with tech momentum, Thursday’s labor market report contributed to the upbeat mood. The U.S. economy added 147,000 jobs in June, consistent with recent trends, while the unemployment rate held steady at 4.1%. Wage growth remained modest, and long-term unemployment showed a slight uptick, suggesting a labor environment that is stable but not overheating.
The data reassured investors that the Federal Reserve is unlikely to take a more aggressive stance on interest rates in the near term, offering additional support for equities. With inflation appearing contained and job creation consistent, the labor report gave traders one less variable to worry about heading into the second half of 2025.
Trump’s tax package gains traction
Perhaps the most significant political development influencing Thursday’s rally was the movement on Capitol Hill. President Trump’s $4.5 trillion tax-and-spending package, dubbed a “big, beautiful bill” by the administration, advanced past a crucial procedural hurdle in the House. The legislation includes sweeping tax cuts, increased defense and border funding, and scaled-back reforms to social programs.
VICTORY: The One Big Beautiful Bill Passes U.S. Congress, Heads to President Trump’s Desk 🇺🇸🎉 pic.twitter.com/d1nbOlL21G
— The White House (@WhiteHouse) July 3, 2025
After facing internal GOP friction, the package gained new life following last-minute negotiations led by Speaker Mike Johnson. The bill is seen as a cornerstone of Trump’s economic platform heading into the next election cycle, and markets interpreted its progress as a signal of upcoming fiscal stimulus.
The president amplified the message on Truth Social, urging Republicans to unify and touting the bill as a growth engine for the economy. While the final vote is still pending, Thursday’s developments offered enough momentum to lift market spirits ahead of the holiday.
That said, with U.S. markets closed Friday in observance of Independence Day, attention now turns to earnings season and Q3 outlooks. Investors will be watching closely to see whether tech’s AI-driven surge and fiscal optimism can sustain the rally into the second half of 2025.
