U.S. markets hit record highs Friday, thanks to a conservative trifecta: cooling inflation, peace in the Middle East, and renewed momentum on President Trump’s pro-growth tax agenda.
S&P 500 closed up 0.52% at an all-time 6,173.07, with the Nasdaq and Dow reaching similar highs. Even a brief dip following news of halted Canada trade talks didn’t shake investor confidence.
Investors breathed a collective sigh of relief as the Fed’s preferred measure, the core PCE index, rose just 0.2% in May and 2.7% year-over-year. Headline inflation was tame at 2.3%.
Consumer forecasts dropped, with expected one-year inflation easing from 6.6% to 5%. As Conservative commentary in The Daily Wire notes, these figures reinforce President Trump’s argument: tariffs won’t undermine stability . Traders now anticipate a Fed rate cut by September, aligning with Trump’s consistent push for lower interest rates.
More good news: the Israel-Iran conflict is officially over—a U.S.-brokered ceasefire removes geopolitical threats that spooked energy markets. National Review applauds the administration’s use of strength-based diplomacy to restore calm . As a result, oil prices slipped below $70 a barrel, easing inflation pressures and reinforcing energy-sector stability.
Back in Washington, progress on Trump-backed tax reform is gaining traction. Treasury is scrapping the so-called “revenge tax,” a retaliatory tariff on nations adopting the OECD’s global minimum tax. With G7 waivers in place, U.S. businesses have a clearer path forward, boosting investor sentiment.
The broader tax package—highlighting capital investment deductions and a simpler corporate structure—has drawn applause from GOP lawmakers and market analysts. The Washington Examiner reports that investors see it as a win for economic growth and hardworking taxpayers .
For conservatives, this rally proves something fundamental: common-sense policies grounded in fiscal discipline, national security, and free-market incentives ignite real growth. With inflation cooling, war risk fading, and tax reform back on track, markets are showing renewed optimism.
Even with caution around valuation and earnings ahead, the Friday rally signals that Trump-era policies continue to bring financial stability and confidence to American families and businesses.
