Stock market today: S&P 500, Nasdaq notch record closes, brushing off renewed trade tensions
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Stock market today: S&P 500, Nasdaq notch record closes, brushing off renewed trade tensions
The S&P 500 closed at an all-time high for the first time since February. The Dow Jones Industrial Average gained 1%, or about 400 points. Stocks temporarily took a dramatic turn after Trump said he was “terminating ALL discussions on Trade with Canada, effective immediately” The latest reading of the Fed’s preferred inflation gauge showed price increases accelerated in May as inflation remained above the 2% target. The report also contained signs of an economic slowdown, however, which could further complicate the emerging debate between Fed hawks and doves.
The S&P 500 (^GSPC) closed at an all-time high for the first time since February. The benchmark index was trading near record territory for much of the session over optimism on the trade front — the US and China clinching a trade truce — and hopes of a rate cut from the Fed sooner rather than later.
The Nasdaq Composite (^IXIC) also notched a record high. Meanwhile, the Dow Jones Industrial Average (^DJI) gained 1%, or about 400 points.
Stocks temporarily took a dramatic turn after Trump posted on social media that he was “terminating ALL discussions on Trade with Canada, effective immediately,” citing Canada’s digital services tax as the cause. He said he would set a new tariff rate on Canadian goods within the next week.
Markets had gotten a boost on the trade front on Friday after Trump said that the US and China have “signed” a trade deal. The two sides have cemented the tariff truce sealed last month in Geneva, and China has confirmed details of the agreed trade framework, per several media reports.
Under the pact, China has committed to delivering rare earth minerals to the US, Commerce Secretary Howard Lutnick told Bloomberg. Once that is underway, “we’ll take down our countermeasures,” he said.
Also on Friday, Treasury Secretary Scott Bessent on Friday said the US could complete the balance of its most important trade talks by Labor Day, raising hopes that the US wouldn’t be firm on its July 9 tariff deadline.
Meanwhile, the Fed’s rate path also remained in focus. The latest reading of the Fed’s preferred inflation gauge showed price increases accelerated in May as inflation remained above the Fed’s 2% target. Fed Chair Jerome Powell has stressed that an uptick in price pressures could be a stumbling block to a rate cut. That report also contained signs of an economic slowdown, however, which could further complicate the emerging debate between Fed hawks and doves.
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