Wall Street Continues to Rally as America First Becomes Entrenched in Rhetoric; Stocks At or Near All-Time Highs with No End in Sight

Apparently, 250 years of American greatness will continue, at least according to the stock market on the first day of trading following the big celebration. All the major indices were up, with the Dow setting a new all-time closing high. The S&P is a little more than one percent of its all-time high (7,609,78, June 2, 2026) while the NASDAQ needs to add two percent to mark a new record.

Wall Street figures on blowing the bubble as hard as possible, to unimaginable levels in the new "Americana" trade.

As far as the Shiller PE (CAPE) is concerned, stocks remain at the second-highest level ever (41.97), dwarfed only by the December 1999 reading of 44.19. That is certainly the target, and it is ultimately achievable because there are no brakes on this runaway train of a stock market.

Returning from the three-day weekend, there is little to suggest that the rally begun upon the ceasefire of the Iran-U.S. conflict (March 30) is anywhere near exhaustion. With the Strait of Hormuz open for business and the MOU between the warring parties still being assembled, the war that was has become a back-page issue. America and Iran both got what they wanted from the conflict. Iran achieved bargaining power while the U.S., despite suffering some catastrophic losses at U.S. bases in Kuwait, Qatar, UAE, and elsewhere, maintained an image of power in the region. How long the game of charades and polite bargaining will continue is anyone's guess.

Where stocks go from here depends on a number of factors, none of them more prominent than the AI buildout, which has run into snags. On the ground, local citizens are protesting the building of large data centers near their communities. state and county officials have been besieged by angry residents fearing a monumental rise in their utility bills, increased pollution, and draining of natural resources, particularly water, which the data centers desperately need for cooling.

There's little doubt that the U.S. needs an overhaul of their electrical grid and other infrastructure like roads, bridges, high-speed internet, and the AI buildout could provide some of the needed upgrade, though not necessarily in places that have the most pressing need. It's a back-handed way of doing what municipalities, states, and the federal government have been ignoring for decades. It would be wise to move forward with infrastructure, as it creates temporary jobs and is very noticeable, fueling the "America, yeah" rhetoric.

Against a backdrop of November midterm elections, the Trump white House needs to project an image of power and strength. So far, they've avoided any walking back in international affairs, which is important as the NATO summit gets underway Tuesday and Wednesday in Ankara, Turkey.

The talk coming out of the summit will likely lean toward continuation of current policies (Russia, bad; Ukraine, good) with a little less focus on American involvement. Europe itself needs to bolster its image, and will do so by making the same threats against Russia as it has for the last four years. The conflict in Ukraine, as much as its become a back-burner issue in the U.S., is still very much front and center in Europe and the leaders in France, Germany, and England need to keep the pressure on Russia.

There's not much chance of change in those policies. Once leaders of countries get an agenda started - good or bad - they are reluctant to walk it back, even if it turns their country to a basket case (England, Germany). The politicians will continue on a war footing for now, which is positive for U.S. stocks overall.

The other issues facing the market are employment and interest rates, both of which seem to be in sweet spots for now. Once Wall Street comes to the realization that the Fed, under Kevin Warsh, is not about to make rash judgement calls and is far from being politicized, the idea that a rate hike is in the cards will vanish like a David Copperfield mummy.

Full speed ahead appears to be the only command Wall Street understands and there are millions of people with passive investments who are in lvoe with that.

At the Close, Monday, July 6, 2026:
Dow: 53,055.91, +155.84 (+0.29%)
NASDAQ: 26,121.16, +288.49 (+1.12%)
S&P 500: 7,537.43, +54.19 (+0.72%)
NYSE Composite: 24,075.12, +118.04 (+0.49%)