The S&P 500 soared to a new all-time closing high of 6297 on Thursday 17th July 2025, lifted by strong earnings from AI chipmakers and upbeat economic data.
Nvidia, Microsoft, and Amazon led the charge, as enthusiasm around artificial intelligence and cloud infrastructure continued to fuel investor appetite.
The rally was supported by June 2025 retail sales, which exceeded expectations, and growing speculation that the Federal Reserve may cut interest rates in September 2025.
The index rose around 0.54% on the day, marking its fifth straight gain and pushing its year-to-date return above 13%.
S&P 500 one-year chart
Meanwhile, the VIX volatility index is around 17 slightly elevated but still well below its long-term average.
This suggests a modest uptick in hedging activity, though overall market sentiment remains confident.
VIX YTD chart
With inflation cooling and tech earnings impressing, the S&P’s breakout sets the stage for a potentially exuberant summer — though analysts caution that valuations are stretched and a pullback could emerge if momentum fades.
A pullback first is likely.