US stocks open higher highs in the S&P and the NASDAQ

The major stock indices are trading higher in early US trading. The S&P and NASDAQ are within striking distance of the all-time highs.

For the S&P index, the all-time high reached in February extended 26147.43. The high price today reached 6117.36. For the NASDAQ index, its all-time high price was reached back in December 2024 at 20204.58. The high price today reached 20074.33.

A snapshot of the market currently shows:

• Dow industrial average up 248 points or 0.57% at 43229.98
• S&P index up 25.58 points or 0.42% at 6117.67.
• NASDAQ index up 60 points or 0.30% at 2033.

U.S. yields are trading lower, with the 2-year yield down 4.5 basis points to 3.733% and the 10-year yield slipping 3.4 basis points to 4.259%. Later today, the Treasury will auction $44 billion in 7-year notes. This follows weaker-than-average demand for both the 2-year and 5-year auctions earlier this week.

Markets are also reacting to reports that President Trump may announce a successor to Fed Chair Jerome Powell by September or October. The expected appointee would likely align more closely with Trump’s policy agenda, raising concerns that such a move could begin to erode the Federal Reserve’s independence and potentially accelerate a path to lower interest rates. While Powell’s term still has 11 months remaining, speculation is growing that a “shadow FOMC” could emerge, undermining his leadership.

Adding to the uncertainty, Powell acknowledged this week that if inflation remains subdued, the Fed could consider cutting rates sooner than anticipated. However, he also cautioned that the inflationary effects of tariffs are likely to materialize through June, July, and August, potentially complicating the policy outlook.

European indices are currently mixed:

• German DAX, +0.10%
• France’s CAC, -0.34%
• UK’s FTSE 100 +0.21%
• Spain’s Ibex -0.06%
• Italy’s FTSE MIB -0.50%.

Crude oil futures are trading up $0.64 or 0.99% $65.55. Gold is trading down $8.16 at $3325.53.Bitcoin is trading down $329 at $107,089

This article was written by Greg Michalowski at www.forexlive.com.