Trade Deals Ignite U.S. Stock Rally with Japan Pact Boost
U.S. stock index futures rose following President Trump's trade deal with Japan. The deal reduces tariffs on Japanese autos and goods, sparking optimism for further agreements. The S&P 500 reached a record close, driven by eased trade tensions and strong earnings reports, while Texas Instruments' forecast disappointed, affecting the tech sector.
In a move that lifted U.S. stock index futures, President Donald Trump's trade agreement with Japan has spurred expectations for more trade deals before the crucial August 1 deadline. The agreement reduces tariffs on Japanese automobiles and other goods.
As of early trading, the S&P 500 E-minis rose 23.5 points, or 0.37%, while the Nasdaq 100 and Dow E-minis also posted gains. This development arrives as European Union representatives prepare to negotiate, though they are readying countermeasures if talks fail.
Elias Haddad, a senior markets strategist, remarked that decreasing trade policy uncertainty boosts risk assets, yet warned of steeper tariffs impacting U.S. growth and inflation starting August 1. Meanwhile, U.S. stocks remain buoyed by a sturdy economy and encouraging earnings, with Tesla and Alphabet set to report next, amid high AI-driven expectations.
(With inputs from agencies.)
ALSO READ
Indian Markets Waver Amid Trump Tariff Uncertainty and Global Earnings Focus
South Korea Pushes for Tariff Reductions in U.S. Trade Deal
Wall Street Optimism: S&P 500 Targets Revised Upwards Amid Economic Shifts
European Corporate Earnings Take a Hit
Wall Street Optimism: BofA and Goldman Sachs Raise S&P 500 Targets Amid Economic Shifts
Google News