05:09 PM EDT, 06/26/2025 (MT Newswires) -- The S&P 500 and the Nasdaq Composite advanced on Thursday, approaching all-time highs, as the White House suggested that President Donald Trump could extend the suspension of reciprocal tariffs.

The S&P 500 climbed 0.8% to 6,141, while the tech-heavy Nasdaq ended 1% higher at 20,167.9, both just a few points away from their record closing levels. The Dow Jones Industrial Average rose 0.9% to 43,386.8.

Most sectors were in the green, led by communication services, while real estate and consumer staples were the only decliners.

Trump in April suspended certain tariffs for 90 days. That deadline expires July 8. Separately, the European Union faces a July 9 deadline to finalize a deal before the US imposes 50% duties on imports from the bloc.

Those cutoff dates are "not critical," White House Press Secretary Karoline Leavitt told reporters on Thursday, according to a CNBC report. "Perhaps it could be extended, but that's a decision for the president to make," Leavitt was quoted as saying.

US Treasury yields were lower, with the two-year rate losing 6.3 basis points to 3.73% and the 10-year rate falling 4.3 basis points to 4.25%.

The Wall Street Journal reported that Trump was contemplating naming Federal Reserve Chair Jerome Powell's replacement by September or October, which would be earlier than the usual three- to four-month transition period. The new chair wouldn't take office until next May, according to the report.

On Wednesday, Trump said that Powell "goes out pretty soon, fortunately, because I think he's terrible," CNBC reported. "I know within three or four people who I'm going to pick."

"Trump's desire to 'shadow' the Fed using a designated replacement for (Powell) isn't a good way to promote the perceptions of integrity and autonomy in US policymaking," Macquarie said in a Thursday client note.

Trump has repeatedly called on the central bank to cut rates. Last week, the Fed kept its policy rate unchanged for a fourth straight meeting, while sticking to its federal funds rate outlook for 2025 amid higher inflation expectations.

Earlier this week, Powell said in prepared remarks to the House Committee on Financial Services that the Fed can continue to wait and evaluate how the US economy responds to policy changes before it adjusts its monetary policy.

Richmond Fed President Tom Barkin said Thursday there is "little upside in heading too quickly in any one direction" as policymakers are facing elevated uncertainty.

"Given the strength in today's economy, we have time to track developments patiently and allow the visibility to improve," Barkin said. "When it does, we are well positioned to address whatever the economy will require."

In economic news, the US economy contracted more than previously estimated in the first quarter as consumer spending weakened, according to a final estimate released Thursday by the Bureau of Economic Analysis.

"Consumers tightened their wallets a lot more than initially anticipated in the first three months of the year as tariff uncertainty weighed," BMO Capital Markets said.

Pending home sales in the US increased more than projected in May amid gains across all four regions on a monthly basis, data from the National Association of Realtors showed.

Weekly applications for unemployment insurance in the US declined more than expected, while continuing claims reached their highest level since November 2021, according to government data.

"Initial jobless claims slipped in the latest week, but layoff notices suggest we could see a pickup in job losses and initial claims in the weeks ahead," Oxford Economics said.

US durable goods orders increased more than expected in May, buoyed by robust demand for commercial planes, government data showed.

West Texas Intermediate crude oil was up 0.8% at $65.44 a barrel.

In company news, Acuity Brands' (AYI) fiscal third-quarter results came in stronger than expected, which the company said positions it for a "solid" second half of the year. The lighting and building management solution provider's shares rose 5.8%.

McCormick ( MKC ) shares jumped 5.3% after the spices and seasonings producer reiterated its full-year outlook amid plans to offset costs related to tariffs. The company's fiscal second-quarter earnings were unchanged annually, but defied market expectations for a decline.

Gold was up 0.1% at $3,345.1 per troy ounce, while silver rose 1.2% to $36.54 per ounce.