Stock market hits record highs as investors bet on trade deals, Fed rate cut
The main stock market indices have been opened in record territory, with investors raised by Signs of progress on an American-Chinese trade agreement.
Friday at noon, the S&P 500 increased by 43 points, or 0.7%, to 6,184, above its fence of all previous time in February of 6,144. The index, which also briefly exceeded its previous record Thursday in the intraday trading, jumped approximately 25% since President Trump announced his “Liberation Day” prices April 2.
The NASDAQ composite won 120 points, or 0.6%, at 20,288, exceeding its previous record, closing the most than 20,174 on December 16, 2024. The industrial average of Dow Jones increased by 1.3% to 43,952 but remains below its previous summit of 45,014 on December 4, 2024.
The markets have made an amazing turnaround since April, when the S&P 500 entered a lower market in the midst of concerns about the Trump administration’s pricing policies. In recent weeks, Investor concerns have relieved In response to a quieter rhetoric on the prices of the White House and provides that the rate of the Federal Reserve will reduce interest rates, analysts said at CBS Moneywatch. A lively rebound in technological actions has also helped to generate the rebound.
Friday, favorable commercial titles helped the actions to extend their earnings, said the vital analyst of knowledge Adam Crisafulli in a report. President Trump said Thursday at the White House event that Washington and Beijing had signed an agreement on trade, Although the details remain vague. He added that he expects to have an agreement with India soon.
The Treasury Secretary, Scott Bessent, also suggested that the Trump administration could postpone the reciprocal rate of July 9. On Friday, in a Fox commercial interview, he said that the United States “may have the trade wrapped in labor festival” – the first indication that the calendar of commercial negotiations could change.
David Lefkowitz, head of American actions at UBS Global Wealth Management, thinks that investors are prices in reductions in commercial friction and geopolitical tensions.
“We believe that the recovery makes sense, since most of the big capitalization companies should resist the prices fairly well. In fact, we believe that the next [second-quarter] The profits season will once again highlight the resilience of business profits, “he told investors in a note.
Despite the renewed optimism, Wall Street analysts warn that the financial markets could still face a upcoming junk road.
“We believe that there is a dangerous complacency on trade / prices, an opinion underlined by the facts this morning celebrate the third time” the agreement, “said Crisafulli in a report.
While the stock market joined on Friday, investors digested new inflation data from the trade department, which indicated that prices increased by 2.3% in May, against a year ago, against only 2.1% in April.
Central inflation – which excludes more volatile food and energy categories – increased by 2.7% compared to the previous year, an increase of 2.5% in the previous month.
contributed to this report.
