Wall Street closed higher on Thursday, nudging the S&P 500 and the Nasdaq nearer to record closing highs as the Israel-Iran ceasefire continued to hold and a raft of economic indicators appeared to support the case for the U.S. Federal Reserve lowering borrowing costs this year.

All three major U.S. stock indexes advanced in a broad rally which placed them on track for weekly gains.

Market Snapshot

The Dow Jones Industrial Average rose 404.41 points, or 0.94%, to 43,386.84, the S&P 500 gained 48.86 points, or 0.80%, to 6,141.02 and the Nasdaq Composite gained 194.36 points, or 0.97%, to 20,167.91. Quantumscape Corp. rose 35%; BigBear.ai Holdings up 21%; AeroVironment up 16%; Hims & Hers Health Inc. up 12%; Circle Internet Corp. up 8%; SUPER MICRO COMPUTER INC up 6%; XPeng Inc. fell 7%.

Market Movers

NVIDIA was up 0.5% to build on its record close from Wednesday. The AI chip maker is the most valuable U.S. company with a market capitalization of $3.78 trillion. Microsoft comes in second at just under $3.7 trillion. Coming into Thursday, Nvidia shares have gained 16% this year.

Cyngn Inc stock surged 171% on Thursday after the company announced its partnership with Nvidia to showcase its autonomous industrial vehicles at Automatica 2025.

CoreWeave is in talks to acquire Core Scientific, according to people familiar with the matter, after the AI company's unsuccessful attempt to buy the digital-infrastructure firm about a year ago. Shares of Core Scientific surged more than 33% on Thursday.

Micron Technology, the memory-chip maker, fell 1% even after reporting fiscal third-quarter adjusted earnings that easily topped Wall Street estimates. Total revenue rose 37% to $9.3 billion, exceeding expectations. Revenue attributed to high-bandwidth memory, which is used in AI systems, jumped nearly 50% quarter over quarter. Micron forecast fourth-quarter revenue of $10.4 billion to $11 billion, better than estimates of $9.9 billion.

Palantir rose 0.9% to $144.25, marking a record close. The stock is up 91% this year.

Tesla Motors was flat after rising earlier in the session. Shares of the electric-vehicle company fell 0.5% on Wednesday after Tesla sold 13,863 cars in Europe in May, down 28% from a year earlier, while overall EV sales in the region jumped 25%. Benchmark analyst Mickey Legg raised his price target on the stock Thursday to $475 from $350, citing the "successful" launch Sunday of the company's robo-taxi service.

Coinbase, the cryptocurrency exchange, was up 5.5% after rising 3.1% on Wednesday to $355.37, the stock's highest close since Nov. 9, 2021, according to Dow Jones Market Data. Coming into Thursday, Coinbase has soared 54% in June, putting it on pace for its best month since November 2024. The company has benefited from Senate passage of the Genius Act, a bill clarifying how stablecoins are regulated.

Market News

Market Bets on a More Dovish Fed as Trump Eyes Powell's Replacement

The gulf between where the Federal Reserve projects interest rates will be by the end of 2026 and the more aggressive cutting financial markets expect by then is partly due to the expectation that U.S. central bank chief Jerome Powell will be replaced by somebody more dovish next year, investors said.

They, however, cautioned against assuming that a change of guard at the Fed would necessarily deliver as much policy easing as markets and U.S. President Donald Trump expect.

Coinbase Shares Hit First Record Since 2021 on Stablecoin Fervor

Coinbase Global Inc. shares closed at the highest level ever, capping off a rally fueled by growing acceptance of the cryptocurrency industry on Wall Street and in Washington.

The crypto-exchange operator’s stock rose 5.5% on Thursday to $375.07. The previous high was $357.39 in November 2021, just months after the company went public through a direct listing.

Nike Tops Low Expectations in FQ4, Signals Bottoming of Headwinds

Nike’s fiscal fourth quarter results were better than Wall Street feared and in-line with the company’s own modest expectations thanks to promotional pricing on its popular sneakers, but still “not where we want them to be.”

“As we enter a new fiscal year, we are turning the page, and the next step is aligning our teams to lead with sport through what we are calling the sport offense. This will accelerate our Win Now actions to reposition our business for future growth," Nike CEO Elliott Hill said in a statement.