S&P 500 Hits Record High as Crypto Stocks Lead The Rally

• S&P 500 hits a record high of 6,173, led by crypto stocks and strong investor sentiment.
• Trump’s tariff rollback and growth agenda lifted the S&P 500 outlook by over 20%.
• With its entry in the S&P 500, Coinbase gained 38.99% in June, boosting investor demand.

The S&P 500 closed Friday at a new all-time high of 6,173 points, surpassing its previous peak of 6,144 by 0.5%. The Index, which tracks 500 leading U.S. companies, has slightly crossed its previous mark, made on February 19, following shortly after President Donald Trump’s second tenure. 

The rally was supported by strong corporate earnings, easing geopolitical tensions, and renewed optimism in digital asset stocks. The surge occurred as major investors rotated funds into growth sectors while tracking broader recovery signals.

The Nasdaq Composite, largely representing tech stocks, also hit a record high Friday. The Dow Jones Industrial Average hovered just below its previous record, and both indices mirrored the S&P 500’s performance, reflecting the current bullish sentiment.

Crypto-Linked Stocks Fuel the Surge

Coinbase Global Inc. (NASDAQ: COIN) was a major contributor to the rally. The stock closed at $353.43 on June 27, gaining 38.99% in the month, marking a rise of $99.14 in just thirty days, signaling heightened investor confidence.

Source: Google Finance

Coinbase reached an all-time high of $382.00 earlier in the month before dipping slightly. During after-hours trading on Friday, it dropped to $351.00, down 0.69%. The stock traded between $346.66 and $372.50 that day, with a yearly range from $142.58 to $382.00.

The company’s market capitalization now stands at $90.02 billion, supported by an average daily volume of 15.78 million shares. Coinbase carries a price-to-earnings ratio of 65.83 and does not issue dividends. 

Moreover, Coinbase became a part of the S&P Index since May of this year, triggering strong institutional demand from index-tracking funds. Further, analysts raised outlooks, wherein Bernstein’s new price target at $395 follows some positive anticipations about Coinbase Payments and stablecoin commerce, and momentum grew as crypto gains lifted the stock. This combined boost in institutional demand, analyst upgrades, and crypto market strength drove Coinbase to its all-time high.

Also, the price movement of Strategy is generally up by 5-8% for every $1,000 increment in the price of Bitcoin. With this understanding, the corrections in Bitcoin price would weigh heavily on the stocks, causing a deeper downside, with the degree of variant fluctuations emphasizing their close association with crypto market behavior.

Related: Strategy Unveils $250M STRD Preferred Stock to Buy Bitcoin

Market Outlook Under Trump’s Economic Push

Price action reflected a highly bullish sentiment, with Trump’s pro-growth agenda aimed at stimulating U.S. economic expansion. Most forecasts run by Wall Street predict a 12% gain for the S&P 500 in 2025, while select analysts suggest potential upside above 20%, reflecting renewed market optimism under an assertive administration.

According to sources, Horizon Investment Services CEO Chuck Carlson stated that the market has been resilient and investors are riding momentum and don’t want to get caught on the wrong side. He further added that many investors who missed the April rebound are now returning. 

Investors also pin hopes on interest rate cuts, improved trade deals, and the Israel-Iran ceasefire to drive further equity gains. Meanwhile, fading global tariff tensions have aided recovery: UBS noted that easing earlier Trump-era tariffs, including China duties, supported its raised S&P 500 year-end target. 

However, earlier in the year, sweeping tariffs—dubbed “Liberation Day”—sparked global market volatility, wiping out $6.6 trillion in value and submerging the S&P 500 around April 2–4. 

These trade developments include tariff escalations on imports from China, Canada, and Mexico that initially shook the markets, but with subsequent easing, it has helped to restore investor confidence and brought back international capital.

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