FX.co ★ Wall Street Pulls Back After Trump’s Trade Shift

On Friday, U.S. stocks relinquished their earlier gains after briefly reaching new record highs. This shift in investor sentiment occurred in response to unexpected remarks from President Donald Trump, who suggested he might terminate trade negotiations with Canada. The S&P 500 fell by 0.1% after achieving a new high, the Nasdaq declined by 0.3% following its own record-setting performance, while the Dow Jones increased by 252 points. Earlier in the day, markets had rallied on optimism about new trade agreements with several major partners, including a preliminary deal with China. However, Trump's sudden announcement concerning Canada unsettled investors, mitigating some of the day's advances. Nonetheless, the broader market has shown a robust recovery since reaching its lowest point in April, bolstered by diminishing inflation concerns and strong corporate earnings. Economic indicators have also contributed to the rebound, with consumer sentiment on the rise and core PCE inflation experiencing only a slight increase. Nike saw a 13% surge following impressive earnings, and Amazon's stock improved by 0.5% after receiving an upgrade.