The Dow Jones index popped on U.S.-China trade optimism. Nvidia stock and Tesla rallied. Rare earth stocks fell on the stock market today.

US stocks surged to record highs on Friday as investors digested a crucial inflation report that helped cement expectations for the Federal Reserve’s next policy moves. The September inflation data released on Friday morning came in cooler than expected.

The so-called Magnificent Seven group of technology stocks was stealing the show on Tuesday — again. Together, these tech titans now make up a record 37.4% of the entire S&P 500 index, turning Wall Street into their own private party.

After the opening bell, the Dow rose 0.6%, or 250 points, as the S&P 500 gained 0.6%. The Nasdaq composite advanced 0.6% in early trading. Small caps on the Russell 2000 outpaced the market with a 1.2% rise.

The Dow hit its 12th record of 2025 on Tuesday, while the S&P 500 was flat and the Nasdaq fell as earnings reports delivered.

The stock market rally has already defied expectations this year, shrugging off geopolitical strife, economic uncertainty and global trade tensions to reach fresh record highs. Some analysts say the rally might just be getting started.

Major stock indexes closed lower on another busy earnings day Wednesday, which also saw a resumption of U.S.-China trade tensions.