Record-Breaking Quarter for Wall Street Amid Trade Optimism

The S&P 500 and Nasdaq surged to record highs, closing their best quarter in over a year. Investor optimism was bolstered by potential trade deals and possible rate cuts, easing uncertainty. The S&P 500 rose over 10%, Nasdaq increased by more than 17%, and the Dow climbed over 4.5%, while the Russell 2000 index jumped over 8% for the quarter.

Trade negotiations with China and the UK have sparked hopes of averting a global trade war, with more deals anticipated before President Trump's July 9 deadline. Roy Behren, co-president of Westchester Capital Management, noted a rise in 'animal spirits.' Efforts continue as U.S. Senate Republicans aim to pass Trump's tax-cut and spending bill ahead of the July 4 holiday, amid internal party divisions.

Key economic data, including non-farm payrolls and the ISM's manufacturing and services survey, are due this week. Jerome Powell and other central bank officials are set to speak, as rate cut bets rise following soft economic data and potential leadership changes at the Fed. Most major banks passed the Fed's stress test, boosting shares and allowing stock buybacks and dividends.

(With inputs from agencies.)