FX.co ★ S&P 500, Nasdaq Eye Record Close on Trade Hopes, Fed Bets

On Friday, U.S. stocks surged to unprecedented levels, marking an impressive recovery from the April downturn, driven by optimism surrounding trade agreements and growing anticipation of interest rate cuts. The S&P 500 advanced by 0.7% to a new all-time high, exceeding its previous peak in February. Meanwhile, the Nasdaq 100 reached a new record, with a 0.6% increase, and the Dow Jones climbed by over 550 points, bolstered by widespread market strength. The positive market sentiment was further enhanced by reports that the United States and China had finalized a trade framework, including an accord on rare earth exports, with agreements with other major trading partners allegedly nearing completion. Although inflation was slightly higher than anticipated, investors were reassured by evidence that price pressures remain moderate enough for Federal Reserve rate cuts to still be feasible. Nvidia, a major technology company, rose by 1.7% to reach a new record high, while Microsoft momentarily touched a new peak before leveling off. Nike experienced a 13% surge following robust earnings, and Amazon saw a 1.1% increase after receiving an upgrade.