Wall Street Surges on Trade Hopes and Fed Rate Cut Expectations

Wall Street continued its upward momentum on Friday, with the S&P 500 and Nasdaq achieving record closing highs. This rally was bolstered by hopes of favorable trade deals and expectations for interest rate cuts by the Federal Reserve. However, optimism waned slightly after President Trump halted trade talks with Canada over its digital tax policy on technology firms.

Despite this setback, all major U.S. stock indexes saw weekly gains, demonstrating market resilience. According to Chuck Carlson, CEO of Horizon Investment Services, the current market is driven by momentum, and investors are keen to capitalize on any opportunity amidst fluctuations.

Economic reports revealed surprising decreases in consumer income and spending, while inflation remains slightly above Fed targets. Meanwhile, trade agreements between Washington and Beijing on rare-earth shipments and positive forecasts from chipmakers like Micron have reinforced investor confidence, particularly in AI and technology stocks. Additionally, Nike reported better-than-expected revenue forecasts, further brightening investor outlook.

(With inputs from agencies.)