FX.co ★ S&P 500, Nasdaq Reach New Records

U.S. stocks soared to new heights on Friday, buoyed by optimism over easing trade policies and expectations of Federal Reserve interest rate cuts, which overshadowed some discouraging economic indicators. The S&P 500 and the Nasdaq 100 each climbed by 0.3% to set fresh records, while the Dow Jones Industrial Average advanced by 200 points. Commerce Secretary Lutnick announced that the United States had secured a trade agreement with China, providing relief from lower tariffs and averting shortages of rare earth materials. Furthermore, officials indicated progress in trade discussions with ten additional countries, signaling a shift in the White House's stance towards trade barriers. Additionally, the Treasury Department decided to eliminate the Section 899 tax from the forthcoming tax bill, thereby facilitating foreign investment in the U.S. Meanwhile, investors continued to favor the likelihood of multiple Federal Reserve rate cuts this year, despite personal spending and income witnessing an unexpected decline in May—although the core PCE price index showed an uptick. Nike's stock surged by 15%, boosted by strong performance results, while Amazon's shares climbed 2% following an upgrade from BNP Paribas Exane.