S&P500: Stock Market Rally Nears Record as Durable Goods Orders Surprise Today

S&P 500 Futures Edge Higher as Durable Goods and Jobless Data Support Market Momentum

U.S. stock futures ticked up Thursday morning as traders eyed the S&P 500 approaching record highs, driven by stronger-than-expected durable goods orders and a pullback in jobless claims. S&P 500 futures gained 0.3%, Nasdaq 100 futures rose 0.4%, and Dow futures advanced 107 points, or 0.5%.

The S&P 500 closed flat Wednesday but remains less than 1% below its all-time high of 6,144.15 set in February. The index has gained over 22% from its April low, buoyed by easing trade tensions and solid earnings, though some investors remain cautious about sustainability in light of geopolitical and fiscal concerns.

Is Strong U.S. Economic Data Enough to Sustain the Rally?

Economic releases on Thursday painted a mixed but generally supportive picture. Initial jobless claims dropped to 236,000, below the 244,000 consensus, suggesting continued strength in the labor market despite elevated continuing claims. Meanwhile, May’s durable goods orders surged 16.4%, more than doubling the 7.5% forecast and rebounding from April’s 6.6% drop. Excluding transportation, the rise was more modest at 0.5%, but defense orders added significant upside.

However, GDP data came in weaker than anticipated. First-quarter GDP was revised down to a 0.5% annualized contraction, reflecting softer consumer spending and exports. While this raises concerns about broader growth momentum, markets largely brushed off the figure in favor of the stronger forward-looking data.

What’s Moving in Premarket Trading?

Micron Technology led tech gainers, rising 2% after posting adjusted earnings of $1.91 per share on $9.3 billion in revenue, both above expectations. The chipmaker’s beat boosted sentiment in semiconductors. Food stocks also advanced, with McCormick up 4% after topping earnings forecasts and General Mills ticking up on a broker upgrade.

On the downside, Kratos Defense dropped nearly 7% after announcing a $500 million stock offering, and Jefferies Financial dipped 2.5% following a weaker earnings report. Furniture company MillerKnoll surged 9.5% after posting an 8% jump in quarterly sales, despite lower EPS.

How Are Geopolitics and Policy Influencing Sentiment?

Geopolitical risks remain on traders’ radar. Although tensions in the Middle East eased following President Trump’s announcement of a ceasefire between Israel and Iran, uncertainty persists with potential violations of the agreement. Fiscal concerns also linger, with Wall Street wary about rising deficits tied to the “One Big Beautiful Bill Act.”

What’s Next for Markets as S&P 500 Eyes New Highs?

With the S&P 500 nearing its all-time high, traders are watching for potential catalysts that could push the index into record territory. Friday’s PCE inflation report will be a key focus for market participants seeking clues on the Federal Reserve’s rate path. Until then, earnings results and economic surprises remain the primary drivers of market sentiment.

More Information in our Economic Calendar.