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- Will the stock market continue to soar? Experts weigh in.</p>
<p>MAX ZAHNJune 25, 2025 at 12:38 PM</p>
<p>The stock market has been on a tear in recent weeks, shrugging off newly imposed tariffs, caution at the Federal Reserve and war in the Middle East.</p>
<p>The S&P 500 has soared 20% since an April low suffered after President Donald Trump's "Liberation Day" tariff announcement. Over that period, the tech-heavy Nasdaq has climbed 28%, while the Dow Jones Industrial Average has jumped 12%.</p>
<p>Over the past month -- even as a U.S.-China trade tensions resurfaced and the Iran war broke out -- the S&P 500 climbed more than 5%.</p>
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<p>Concern among investors about topsy-turvy economic policy has given way to cautious optimism about a dialed-back tariff posture and continued economic growth, some analysts told ABC News. While day-to-day price swings will likely persist, they added, the current outlook points to further gains over the remainder of the year.</p>
<p>"The market is making a pretty concerted effort to try to look past some of these near term disruptions," Yung-Yu Ma, chief investment strategist at PNC Financial Services, told ABC News.</p>
<p>In recent weeks, Trump has rolled back some of his steepest levies, easing costs imposed upon companies and alleviating concern about a sharp surge of inflation.</p>
<p>A trade agreement last month between the U.S. and China slashed tit-for-tat tariffs between the world's two largest economies and triggered a surge in the stock market. Within days, Wall Street firms softened their forecasts of a downturn.</p>
<p>The downshift of tariffs has coincided with data demonstrating a healthy economy.</p>
<p>Fresh inflation data earlier this month showed a slight acceleration of price increases, but inflation remains near its lowest level since 2021. Hiring slowed but remained sturdy in May as the uncertainty surrounding on-again, off-again tariffs appeared to curtail hiring less than some economists feared, a government report this month showed.</p>
<p>The outbreak of tit-for-tat strikes between Iran and Israel earlier this month sent stocks falling and hiked oil prices. Those challenges proved short-lived, however, as stocks resumed their gains and oil prices eased amid a ceasefire.</p>
<p>"The stock market doesn't care about geopolitical events," Ivan Feinseth, a market analyst at Tigress Financial, told ABC News. "The market might react for a day or two, but it was nothing sustained."</p>
<p>Investors have also placed hope in an expected lowering of interest rates at the Fed. So far this year, the central bank has taken up a wait-and-see approach, holding interest rates steady as policymakers await the potential effects of tariffs. A recent Fed forecast suggested a likely pivot, however, predicting two quarter-point cuts this year as well as two quarter-point cuts next year.</p>
<p>"The stock market's recent strength reflects growing optimism around a soft landing, improving corporate earnings and the potential for lower interest rates ahead," Brian Buetel, managing director at UBS Wealth Management, said in a statement last week.</p>
<p>Jeenah Moon/Reuters - PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York, June 25, 2025.</p>
<p>Still, the market faces meaningful risks, analysts said.</p>
<p>Trade tensions could worsen and tariffs could escalate, some analysts said, while noting the difficulty of anticipating exactly where the levies will land. A resumption of hostilities in the Middle East could drive up oil prices and hamper global economic growth, they added. A burst of tariff-induced inflation could nudge the Fed toward a cautious approach and delay potential interest rate cuts.</p>
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<p>"Despite the market getting close to its highs, getting too enthusiastic is probably not what's called for at this point," Ma said. "It's still a back-and-forth market."</p>
<p>Nevertheless, analysts expect an upswing in the stock market over the remainder of 2025. Feinseth forecasted an uptick in the S&P from its current level of 6,090 to 6,500, which would mark an increase of 6%. Ma predicted similar gains, saying the market would rise at least 5%.</p>
<p>"We think the overall end destination is one that will be palatable for markets," Ma said. "But it will be a bumpy path from here to there."</p>
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