Market Soars to New Highs: GENIUS Act Unleashes Crypto Rally, Economic Data Fuels Growth

The S&P 500 recently achieved its ninth all-time closing high of 2025, a milestone mirrored by record closes for both the Nasdaq Composite and the Dow Jones Industrial Average, signaling broad-based market strength. This latest surge was significantly propelled by a convergence of robust economic indicators and a pivotal legislative advancement in the digital asset space, reflecting evolving investor confidence.

• The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all reached new all-time closing highs.
• President Donald Trump signed the GENIUS Act into law, marking the first comprehensive crypto regulation in U.S. history.
• Initial jobless claims declined to 221,000, and June retail sales increased by 0.6%, significantly exceeding expectations.
• Approximately 88% of S&P 500 companies that have reported earnings thus far have surpassed analyst estimates.
• The CLARITY Act, a more comprehensive crypto market structure bill, passed the House of Representatives and is now advancing to the Senate.

The GENIUS Act: A Landmark in Crypto Regulation

A primary catalyst for the market’s upward trajectory was President Donald Trump’s signing of the GENIUS Act into law. This legislative action, widely hailed as the first comprehensive crypto regulation in U.S. history, immediately ignited a rally across digital asset-related stocks such as Coinbase, Robinhood, and Bitmine Immersion. The Act’s codification of crypto oversight into federal law is seen as a durable measure, designed to be difficult for future administrations to overturn. Economist Noelle Acheson, author of ‘Crypto is Macro Now,’ underscored its historical significance, stating it is “the biggest deal in crypto so far this year… the first crypto-focused law in the history of the United States, home to the largest financial market in the world.”

Following the GENIUS Act’s enactment, several crypto-centric companies posted notable gains. Coinbase, for instance, closed with a 2% increase, extending its positive streak to five consecutive weeks and surpassing its 2021 IPO peak. Robinhood saw a 4% rise, while Bitmine Immersion added 1%. Paradoxically, while the broader crypto ecosystem benefited from regulatory clarity, Bitcoin itself experienced a slight 1% dip, weighing on firms directly correlated to the leading cryptocurrency. Strategy (formerly MicroStrategy) saw a 6% decline, and mining firm Mara Holdings, often considered a Bitcoin proxy, fell 2%. This contrasted sharply with Ether’s performance, which soared 18% during the week, culminating in a 43.6% two-week rally—its strongest since August 2021—underscoring a significant shift in altcoin leadership. Separately, the CLARITY Act, a more comprehensive bill regarding crypto market structures, has successfully passed the House of Representatives and is now advancing to the Senate for further deliberation.

Underlying Economic Strength Fuels Optimism

Beyond the digital asset sector, underlying economic fundamentals provided additional impetus for investor optimism. The Labor Department reported a decline of 7,000 in initial jobless claims for the week ending July 12, settling at 221,000. This data point suggests a resilient labor market, challenging concerns about escalating layoffs despite prevailing inflation and interest rate hike narratives. Further bolstering market sentiment were stronger-than-anticipated retail sales figures. The U.S. Census Bureau announced a 0.6% increase in June retail sales from May, tripling the 0.2% estimate provided by Dow Jones analysts. This robust consumer spending indicates continued economic momentum, positively impacting corporate revenues and overall investor outlooks.

Corporate Earnings Bolster Market Momentum

The positive economic trends are visibly translating into corporate performance. Of approximately 50 S&P 500 companies that have reported earnings thus far, a remarkable 88% have surpassed analyst expectations, according to data from FactSet. This strong earnings season included standout performances from companies like PepsiCo, which gained 7%, and United Airlines, up 3%. As the week concludes, market projections anticipate the S&P 500 to maintain a 0.6% gain, with the Dow expected to rise 0.3%. The Nasdaq Composite, however, is leading the major indexes with a projected 1.5% increase for the week, cementing technology—and by extension, crypto-related stocks—as the period’s top performers.