"Market Rally: S&P 500 Hits Record High, Dow Surges Over 475 Points"

U.S. stocks closed higher, with the Dow leading gains and the S&P 500 setting a closing record, driven by drugmaker Merck's 4.96% surge after the FDA approved its therapy for a rare lung condition. Investors are awaiting inflation data and Federal Reserve commentary for rate path signals, while recent hotter-than-expected inflation hasn't significantly altered expectations for a rate cut. The Dow rose 1.22%, nearing the 40,000 level, and the S&P 500 gained 0.86%, with all 11 major sectors higher. Trump Media & Technology Group jumped 14.19% after its Nasdaq debut, while GameStop plunged 15.03% due to declining sales.