Wall Street rises after US-Japan trade deal announced
The pact will slash tariffs on the Japanese car sector to 15 per cent from 27.5 per cent, with duties on other goods also dropping to 15 per cent from 25 per cent.
In early trading on Wednesday, the S&P 500 gained 20.11 points, or 0.31 per cent, to 6,329.73, the Nasdaq Composite gained 39.71 points, or 0.19 per cent, to 20,932.40 and the Dow Jones Industrial Average rose 215.38 points, or 0.48 per cent, to 44,717.82 - closing in on its all-time high.
Meanwhile, Wall Street's "fear gauge," the CBOE Volatility Index, dipped to its lowest level in nearly two weeks.
As United States and European Union officials head into crucial trade talks, hopes are high for a breakthrough agreement.
However, the European Commission signalled it is ready to play hardball, preparing to seek approval for 93 billion euros ($A166 billion) in counter-tariffs on US goods.
"The United States has been working very hard on trying to get a lot of trade deals in time before the August 1st deadline, and it seems like they're starting to get some momentum. So I do think this is a very positive sign," said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Investors are now laser-focused on earnings from the "Magnificent Seven" - the market's star performers who have powered stocks to record highs.
Tesla and Alphabet are set to report after the bell on Wednesday.
With AI optimism running high and valuations stretched, expectations for these tech giants are sky-high, leaving little margin for disappointment.
In earnings-focused moves, GE Vernova's shares climbed 13.7 per cent to an all-time high, as the power equipment maker raised its current-year revenue and free cash flow forecasts after beating Wall Street estimates for second-quarter profit.
Texas Instruments tumbled 12.7 per cent after its quarterly profit forecast failed to impress investors as it pointed to weaker-than-expected demand for its analogue chips from some customers and underscored tariff-related uncertainty.
The earnings also weighed on its peer analogue chipmakers, with NXP Semiconductors, Analog Devices and ON Semiconductor falling between 3.5 per cent and 5.6 per cent.
Toymaker Hasbro slipped 2.4 per cent even after raising its annual revenue forecast.
A 1.7 per cent drop in AT&T kept the communications sector in the red, with all other sectors in positive territory.
The company's stock dropped despite beating quarterly profit estimates.
In US economic data, existing home sales numbers for June are due on the day.
Thursday's weekly jobless claims numbers and S&P Global's flash PMI data will be closely assessed to gauge economic health in the wake of tariff uncertainties.
Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week.
Odds for a September reduction stand at 58 per cent, according to the CME FedWatch tool.
The Fed's July meeting will follow on the heels of mounting concerns about its independence amid Trump's persistent attacks on chair Jerome Powell for his reluctance to cut rates.
Advancing issues outnumbered decliners by a 2.22-to-1 ratio on the NYSE and by a 1.76-to-1 ratio on the Nasdaq.
The S&P 500 posted 30 new 52-week highs and two new low while the Nasdaq Composite recorded 48 new highs and eight new lows.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News.com.au
37 minutes ago
- News.com.au
Starmer to press Trump on Gaza, trade in Scotland talks
UK Prime Minister Keir Starmer will press Donald Trump on ending "the unspeakable suffering" in Gaza, and also talk trade, when they meet Monday at the US president's golf resort in Scotland, Downing Street said. The talks will come a day after the US and the European Union reached a landmark deal to end a transatlantic standoff over tariffs and avert a full-blown trade war. Starmer is expected to push Trump on urging a revival of stalled ceasefire talks between Israel and Hamas as a hunger crisis deepens in the besieged Palestinian territory. The meeting at Turnberry, southwestern Scotland, comes as European countries express growing alarm at the situation in Gaza, and as Starmer faces domestic pressure to follow France's lead and recognise a Palestinian state. The leaders will also discuss implementing a recent UK-US trade deal, as well as efforts to end Russia's war against Ukraine, according to a British government statement issued late Sunday. But it is the growing threat of starvation faced by Palestinians in Gaza that is set to dominate the talks, on the third full day of Trump's trip to the land where his mother was born. Starmer is expected to "welcome the president's administration working with partners in Qatar and Egypt to bring about a ceasefire in Gaza," a Downing Street spokesperson said. - 'Reject hunger' - Trump told reporters Sunday that the United States would give more aid to Gaza but he wanted other countries to step up as well. "It's not a US problem. It's an international problem," he said, before embarking on crunch trade talks with EU chief Ursula von der Leyen at the resort south of Glasgow. He also accused Hamas of intercepting aid, saying "they're stealing the food, they're stealing a lot of things. You ship it in and they steal it, then they sell it." Starmer and Trump's meeting comes after the UK PM backed efforts by Jordan and the United Arab Emirates to air drop aid to Gaza. Humanitarian chiefs remain sceptical those aid drops can deliver enough food safely for the area's more than two million inhabitants. On Sunday, Israel declared a "tactical pause" in fighting in parts of Gaza and said it would allow the UN and aid agencies to open secure land routes to tackle the hunger crisis. United Nations chief Antonio Guterres urged the international community on Monday to fight against hunger around the world. "Hunger fuels instability and undermines peace. We must never accept hunger as a weapon of war," he told a UN conference. - Tariffs - Last week, the United States and Israel withdrew from Gaza truce talks, with US envoy Steve Witkoff accusing Hamas of blocking a deal -- a claim rejected by the Palestinian militant group. Starmer held talks with French and German counterparts on Saturday, after which the UK government said they agreed "it would be vital to ensure robust plans are in place to turn an urgently-needed ceasefire into lasting peace". But the Downing Street statement made no mention of Palestinian statehood, which French President Emmanuel Macron has announced his country will recognise in September. More than 220 MPs in Britain's 650-seat parliament, including dozens from Starmer's own ruling Labour party, have demanded that he too recognise Palestinian statehood. Business Secretary Jonathan Reynolds told ITV on Monday that "every Labour MP, was elected on a manifesto of recognition of a Palestinian state" and that it was "a case of when, not if." Number 10 said Starmer and Trump would also discuss "progress on implementing the UK-US trade deal", which was signed on May 8 and lowered tariffs for certain UK exports but has yet to come into force. Trump said Sunday the agreement was "great" for both sides but Reynolds told BBC Breakfast on Monday that "it wasn't job done" and cautioned not to expect any announcement of a resolution on issues such as steel and aluminium tariffs. After their meeting the two leaders will travel together to Aberdeen in Scotland's northeast, where the US president is expected to formally open a new golf course at his resort on Tuesday. Trump played golf at Turnberry on Saturday and Sunday on his five-day visit that has mixed leisure with diplomacy, and also further blurred the lines between the presidency and his business interests. pdh-jwp/jkb/jm
Sky News AU
2 hours ago
- Sky News AU
Trump delivers on ‘America first' promise as US economy flourishes
Newsweek Senior Editor-at-Large Josh Hammer praises US President Donald Trump's economic plan, claiming it is generating 'massive revenue' for the country. 'All of the critics … they said he's going to destroy the economy. Nothing like that has happened,' Mr Hammer told Sky News host Rita Panahi. 'The inflation rate has barely budged … meanwhile, massive revenue is coming into the US treasury, and most importantly, he is fulfilling his 'America First' campaign promise. 'It's all working according to plan, and frankly, the people who were saying he would tank the economy … I think it's probably not too soon to say that the President probably deserves an apology from some of these folks.'
Perth Now
3 hours ago
- Perth Now
ASX jumps on the latest Trump deal
Australia's sharemarket snapped a brief two day losing streak on Monday after US President Donald Trump announced his latest trade deal and the major banks bounced back from their recent falls. The benchmark ASX 200 index closed up 30.8 points or 0.36 per cent at 8697.7 after hitting an intraday high of 8704.9, while the broader All Ordinaries finished in the green up 29.20 points or 0.33 per cent to 8,963.50. The Australian dollar slipped from a nine-month high on Friday buying 65.51 US cents at the time of writing. On an overall positive day, eight of the 11 sectors finished in the green, led by the telecommunications sector, the big four banks and healthcare stocks. The ASX had a good day after Donald Trump announced a trade deal with the EU. Gaye Gerard / NewsWire Credit: News Corp Australia Shares in Telstra gained 0.81 per cent to $4.95, REA Group jumped 1.34 per cent to $236.09 and CAR group added 1.72 per cent to $37.89. Market heavyweight CBA gained 1.17 per cent to $174.90 offsetting half the falls in recent days, while NAB gained 0.67 per cent to $37.76, Westpac added 0.54 per cent to $33.21 and ANZ group closed 0.30 per cent higher at $30.31. Healthcare darling CSL gained 1 per cent to $270.59, Sigma Healthcare added 1.41 per cent to $2.88 and ResMed finished 0.97 per cent higher to $41.70. The markets jumped after US President Donald Trump announced a deal with the EU to end four months of negotiations between the two economic powerhouses. Following the discussions, the EU will face a 15 per cent tariff from the US, which is down from the 25 per cent the President announced in April. European Commission chief Ursula von de Leyen described it as 'a big deal, a huge deal, bringing: stability and predictability' to the two trading partners. IG market analyst Tony Sycamore said global markets around the world jumped on these trade deals. 'In terms of the trade deals with Japan and Europe, the tariff rate that will be implemented came in lower than initially threatened and the market is looking very positively on it,' Mr Sycamore said. Uranium shares were one of the rare misses during Monday's trading, dragged down by news out of Boss Energy which flagged challenges out of its Honeymoon uranium project. Boss Energy shares plummeted 43.97 per cent to $1.90, Deep Yellow fell 8.34 per cent to $1.65 and Paladin Energy dropped 4.43 per cent to $6.91. 'That is the uranium sector in a nutshell,' he said. 'It is one where you have to be prepared for extraordinary volatility. 'This was a disappointing performance day and a disappointing report by Boss Energy.' In company news, Helloworld Travel shares soared 14.14 per cent to $1.69 after the business upgraded its guidance to somewhere between $58-$62m. Stealth Group's shares also soared 11.02 per cent to $0.70 after announcing a 50 per cent jump in pre-orders on the back of the soon to be released iPhone 17. Bubs Australia shares jumped 2.94 per cent to $0.18 after the infant formula maker announced Joe Cootes as its new chief executive, effective immediately.
