US stocks close at an all-time high just months after plunging on tariff fears

U.S. stocks closed at an all-time high Friday, another milestone in the market's remarkable recovery from a springtime plunge caused by fears that the Trump administration's trade policies could harm the economy.

The S&P 500 rose 0.5%, finishing above its previous record set in February. The key measure of Wall Street’s health fell nearly 20% from February 19 through April 8.

The market's complete turnaround from its deep swoon happened in about half the time that it normally takes, said Sam Stovall, chief investment strategist at CFRA.

“Investors will breathe a sigh of relief,” he said.

The Nasdaq composite gained 0.5% and set its own all-time high. The Dow Jones Industrial Average rose 1%.

President Donald Trump’s decision Friday to halt trade talks with Canada threatened to derail Wall Street’s run to a record, but the market steadied after the S&P 500 briefly turned negative.

The gains on Friday were broad, with nearly every sector within the S&P 500 rising. Nike soared 15.2% for the biggest gain in the market, despite warning of a steep hit from tariffs.

The broader market has seemingly shaken off fears about the Israel-Iran war disrupting the global supply of crude oil and sending prices higher. A ceasefire between the two nations is still in place.

The price of crude oil in the U.S. rose 0.4% to $65.52 a barrel. Prices have fallen back to pre-conflict levels.

Investors are also monitoring potential progress on trade conflicts between the U.S. and its trading partners, specifically China. The two countries have signed a trade deal that will make it easier for American firms to obtain magnets and rare earth minerals from China that are critical to manufacturing and microchip production, U.S. Treasury Secretary Scott Bessent said Friday.

China’s Commerce Ministry also said that the two sides had “further confirmed the details of the framework” for their trade talks. But its statement did not explicitly mention an agreement to ensure U.S. access to rare earths, and instead said it will review and approve “eligible export applications for controlled items.”

An update on inflation Friday showed prices ticked higher in May, though the rate mostly matched economists' projections.

Inflation remains a big concern for businesses and consumers. Trump’s on-again-off-again tariff policy has made it difficult for companies to make financial forecasts. It has also put more pressure on consumers worried about already stubborn inflation. A long list of businesses from carmakers to retailers have warned that higher import taxes will likely hurt their revenues and profits.

The U.S. has 10% baseline tariffs on all imported goods, along with higher rates for Chinese goods and other import taxes on steel and autos. The economy and consumers have remained somewhat resilient, though analysts and economists expect to see the impact grow as import taxes continue to work their way through businesses to consumers.

“While we also would have expected to already be seeing a bit more passthrough into the inflation statistics, we still expect these impacts to show up in a more meaningful way in the next few months,” said Greg Wilensky, head of U.S. fixed income and portfolio manager at Janus Henderson.

The threat of more severe tariffs continues to hang over the economy. The current pause on a round of retaliatory tariffs against a long list of nations is set to expire in July. Failure to negotiate deals or further postpone the tariffs could once again rattle investors and consumers.

The Federal Reserve is monitoring the tariff situation with a big focus on inflation. The rate of inflation has been stubbornly sitting just above the central bank's target of 2%. In a report Friday, its preferred gauge, the personal consumption expenditures index, rose to 2.3% in May. That's up from 2.2% the previous month.

The Fed cut interest rates three times in late 2024 following a historic series of rate hikes to cool inflation. The PCE was as high as 7.2% in 2022 while the more commonly used consumer price index hit 9.1%.

The Fed hasn't cut rates so far in 2025 over worries that tariffs could reignite inflation and hamper the economy. Economists still expect at least two rate cuts before the end of the year.

Bond yields held relatively steady. The yield on the 10-year Treasury rose to 4.27% from 4.24% late Thursday. The two-year Treasury yield, which more closely tracks expectations for what the Federal Reserve will do, edged up to 3.74% from late Thursday.

All told, the S&P 500 rose 32.05 points to 6,173.07. The Dow gained 432.43 points to 43,819.27, and the Nasdaq added 105.55 points to 20,273.46.

Stocks in Europe were mostly higher, while stocks in Asia finished mixed.

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This story has been corrected to say the Federal Reserve cut rates three times last year, not two, and that the price of oil rose 0.4%, not fell.

Trades Peter Mancuso, left, and Phil Quartuccio work on the floor of the New York Stock Exchange, Friday, June 27, 2025. (AP Photo/Richard Drew)

A board above the trading floor of the New York Stock Exchange shows the closing number for the S&P 500, Friday, June 27, 2025. (AP Photo/Richard Drew)

Trader Justin Flinn, left, works on the floor of the New York Stock Exchange, Friday, June 27, 2025. (AP Photo/Richard Drew)

Trader Edward Curran works on the floor of the New York Stock Exchange, Friday, June 27, 2025. (AP Photo/Richard Drew)

Trader Joe Dente, left, meets New York Mayor Eric Adams on the floor of the New York Stock Exchange after Adams was interviewed on CNBC, Friday, June 27, 2025. (AP Photo/Richard Drew)

Trader Michael Pistillo, left, meets New York Mayor Eric Adams on the floor of the New York Stock Exchange after Adams was interviewed on CNBC, Friday, June 27, 2025. (AP Photo/Richard Drew)

Trader Michael Capolino works on the floor of the New York Stock Exchange, Friday, June 27, 2025. (AP Photo/Richard Drew)

Traders Ryan Falvey, left, and Robert Charmak work on the floor of the New York Stock Exchange, Friday, June 27, 2025. (AP Photo/Richard Drew)

Trader Robert Oswald works on the floor of the New York Stock Exchange, Wednesday, June 25, 2025. (AP Photo/Richard Drew)

A Wall Street sign hangs near to the New York Stock Exchange, Wednesday, June 18, 2025, in New York. (AP Photo/Yuki Iwamura)

A dealer walks past near screens showing the foreign exchange rate between U.S. dollar and South Korean won and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Friday, June 27, 2025. (AP Photo/Lee Jin-man)

A dealer walks past near screens showing the Korea Composite Stock Price Index (KOSPI) at a dealing room of Hana Bank in Seoul, South Korea, Friday, June 27, 2025. (AP Photo/Lee Jin-man)

A dealer walks past near screens showing the Korea Composite Stock Price Index (KOSPI), left, the foreign exchange rate between U.S. dollar and South Korean won and South Korean won and the Korean Securities Dealers Automated Quotations (KOSDAQ) at a dealing room of Hana Bank in Seoul, South Korea, Friday, June 27, 2025. (AP Photo/Lee Jin-man)

A dealer walks past near screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea, Friday, June 27, 2025. (AP Photo/Lee Jin-man)

WASHINGTON (AP) — President Donald Trump is meeting with oil executives at the White House on Friday in hopes of securing $100 billion in investments to revive Venezuela’s ability to fully tap into its expansive reserves of petroleum — a plan that rides on their comfort in making commitments in a country plagued by instability, inflation and uncertainty.

Since the U.S. military raid to capture former Venezuelan leader Nicolás Maduro on Saturday, Trump has quickly pivoted to portraying the move as a newfound economic opportunity for the U.S., seizing tankers carrying Venezuelan oil, saying the U.S. is taking over the sales of 30 million to 50 million barrels of previously sanctioned Venezuelan oil and will be controlling sales worldwide indefinitely.

On Friday, U.S. forces seized their fifth tanker over the past month that has been linked to Venezuelan oil. The action reflected the determination of the U.S. to fully control the exporting, refining and production of Venezuelan petroleum, a sign of the Trump administration's plans for ongoing involvement in the sector as it seeks commitments from private companies.

It's all part of a broader push by Trump to keep gasoline prices low. At a time when many Americans are concerned about affordability, the incursion in Venezuela melds Trump’s assertive use of presidential powers with an optical spectacle meant to convince Americans that he can bring down energy prices.

The meeting, set for 2:30 p.m. EST, will be open to the news media, according to an update to the president's daily schedule. “At least 100 Billion Dollars will be invested by BIG OIL, all of whom I will be meeting with today at The White House,” Trump said Friday in a pre-dawn social media post.

Trump is set to meet with executives from 17 oil companies, according to the White House. Among the companies attending are Chevron, which still operates in Venezuela, and ExxonMobil and ConocoPhillips, which both had oil projects in the country that were lost as part of a 2007 nationalization of private businesses under Maduro’s predecessor, Hugo Chávez.

The president is meeting with a wide swath of domestic and international companies with interests ranging from construction to the commodity markets. Other companies slated to be at the meeting include Halliburton, Valero, Marathon, Shell, Singapore-based Trafigura, Italy-based Eni and Spain-based Repsol.

Large U.S. oil companies have so far largely refrained from affirming investments in Venezuela as contracts and guarantees need to be in place. Trump has suggested on social media that America would help to backstop any investments.

Venezuela’s oil production has slumped below one million barrels a day. Part of Trump's challenge to turn that around will be to convince oil companies that his administration has a stable relationship with Venezuela’s interim President Delcy Rodríguez, as well as protections for companies entering the market.

Secretary of State Marco Rubio, Energy Secretary Chris Wright and Interior Secretary Doug Burgum are slated to attend the oil executives meeting, according to the White House.

Meanwhile, the United States and Venezuelan governments said Friday they were exploring the possibility of r estoring diplomatic relations between the two countries, and that a delegation from the Trump administration arrived to the South American nation on Friday.

The small team of U.S. diplomats and diplomatic security officials traveled to Venezuela to make a preliminary assessment about the potential re-opening of the U.S. Embassy in Caracas, the State Department said in a statement.

Trump also announced on Friday he’d meet with President Gustavo Petro in early February, but called on the Colombian leader to make quick progress on stemming flow of cocaine into the U.S.

Trump, following the ouster of Maduro, had made vague threats to take similar action against Petro. Trump abruptly changed his tone Wednesday about his Colombian counterpart after a friendly phone call in which he invited Petro to visit the White House.

President Donald Trump waves as he walks off stage after speaking to House Republican lawmakers during their annual policy retreat, Tuesday, Jan. 6, 2026, in Washington. (AP Photo/Evan Vucci)