How the stock market made it back to a new record — even with so much still to worry about

An aggressive trade war, Middle East escalation and AI competitions overseas — None of 2025′s big curveballs managed to spoil the market’s epic comeback from the year’s lows as stocks stand within reach of a new record. Here’s why.

The S&P 500

is just 0.85% away from closing at a new record, rebounding from a near 20% sell-off in April. The tech-focused Nasdaq 100

is already one step ahead, hitting an all-time high on Tuesday. The latest leg higher came as investors bet a ceasefire in the Middle East could prevent a major disruption to global oil supply.

“I’m surprised by the magnitude of the rebound,” said Kevin Simpson, portfolio manager at Capital Wealth Planning. “When you factor in the geopolitical backdrop — the ongoing conflict, volatility and uncertainty — I wouldn’t have expected the S&P 500 to snap back to new highs this quickly. This kind of strength speaks to just how much liquidity is still in the system and how eager investors are to buy dips in a market dominated by megacap tech and AI enthusiasm.”