📰 Wall Street Surges: S&P 500 and Nasdaq Hit Record Highs
U.S. stock markets ended Friday with impressive gains, as investor sentiment soared on renewed global trade optimism. The S&P 500 and Nasdaq both closed at record highs, driven by positive developments in U.S.-China trade talks—even as tensions flared between the U.S. and Canada.
S&P 500 and Nasdaq
Despite a brief midday dip after President Donald Trump abruptly ended trade negotiations with Canada over its digital services tax on U.S. tech companies, markets quickly regained momentum. Trump announced via social media that tariffs on Canadian imports would be detailed within the week. Still, investors appeared unfazed as positive signals elsewhere outweighed the fallout.
“We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,” Trump posted.
The Dow Jones Industrial Average closed up 1%, or 432.43 points, to 43,819.27, while the S&P 500 gained 0.52%, or 32.11 points, to 6,173.13. The Nasdaq Composite climbed 0.52%, or 105.54 points, to settle at 20,273.46.
Both the S&P 500 and Nasdaq had hovered near record territory for days, but Friday marked the decisive breakout investors were waiting for.
🌍 Trade Optimism Sparks Rally
Markets opened strong after Trump confirmed a finalized trade deal with China, a major economic partner. The agreement includes commitments from China to supply rare earth minerals—critical for sectors like clean energy and aerospace—and to ease tech export restrictions.
Commerce Secretary Howard Lutnick told Bloomberg that deals with 10 additional countries are also in the works. Meanwhile, Treasury Secretary Scott Bessent said the U.S. expects to conclude negotiations with 18 key trading partners by Labor Day.
European Commission President Ursula von der Leyen and Lutnick also noted progress on an EU-U.S. trade agreement, suggesting a global thaw in trade tensions.
📊 Economic Data Lifts Sentiment
Investors also found comfort in Friday’s economic reports. The University of Michigan consumer sentiment index rose by 16.3% to 60.7 in June, reflecting easing inflation expectations.
Additionally, the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index, showed 2.3% annual growth, in line with expectations. However, the core PCE, which excludes food and energy, came in slightly higher at 2.7%.
“The inflation report probably dashes the slim hopes investors had for a July rate cut,” said Bret Kenwell, investment analyst at eToro.
Still, real consumer spending fell by 0.3% in May, the first drop this year, largely due to a previous surge in goods purchases as consumers rushed to beat tariff hikes. However, spending on services increased, softening the blow.
🏢 Corporate Highlights
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Nike beat earnings estimates and forecast stronger sales, but warned tariffs could increase costs by $1 billion this fiscal year. Shares surged 15.19%.
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CorMedix announced a public stock offering worth $85 million, sending shares down 16.44%.
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Credit bureau stocks saw mixed reactions after Bill Pulte of the Federal Housing Finance Agency said all bureaus are under review.
In the crypto space, Bakkt Holdings filed with the SEC to sell up to $1 billion in securities to invest in bitcoin and other digital assets. Bitcoin remained relatively unchanged at $106,975.
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