The S&P 500 advanced 0.40%, reaching a record high of 6,388.64 points at closing, marking its fifth consecutive record. Meanwhile, the Nasdaq rose by 0.24% to a new record of 21,108.32 points at the end of the trading session, and the Dow Jones Industrial Average increased by 0.47%.
“These historic records are supported by optimism about trade agreements and strong company results” pertaining to the second half of the year, summarized Angelo Kourkafas of Edward Jones in a statement to AFP.
As the August 1 deadline approaches, investors are hoping for the finalization of agreements on the tariffs announced by Donald Trump.
Negotiations have so far concluded with five countries, namely the United Kingdom, Japan, Vietnam, Indonesia, and the Philippines.
Trump stated today that the likelihood of the U.S. reaching a trade deal was ’50-50′.
According to various European sources, this agreement foresees custom surcharges of 15% on European exports to the U.S., with exceptions including aerospace, spirits, and some pharmaceuticals. This percentage is half of the 30% Trump had threatened to impose.
The stock market continues to benefit from the strong quarterly performances of certain companies, like Alphabet, which significantly exceeded expectations today.
“Next week, several of the so-called Seven Magnificent (a term for the major tech conglomerates) will release their financial results, which could disrupt the summer calm,” commented Kourkafas.
“Any disruption indicated by their results will have repercussions on the entire market,” anticipated Kourkafas.
Meanwhile, investors have been reassured by the economic data released this week, including a decline in unemployment benefit claims, marking the sixth consecutive weekly decrease.
