CNBC Daily Open: The S&P 500 hits a high — but as Trump gives, so can he take

CNBC

6 hours ago

Something I rarely, if ever, say: What a wonderful Monday morning!
On Friday stateside, the S&P 500 broke its previous record. Celebrations were shared with the Nasdaq Composite, which also hit a new high. The tech-heavy index enjoyed a liftoff from Nvidia and Microsoft, both of which reached all-time highs (and probably made some insiders at Nvidia multi-millionaires over the past month).
Tariff relief buoyed sentiment in markets. China announced it had finalized details of its deal with the United States. And even though U.S. President Donald Trump's "reciprocal" tariffs are due to kick in (again) one week later, he suggested that his administration "can do whatever we want" regarding the 90-day pause.
Postponing the return of those tariffs would give investors further cheer and put another feather, perhaps of the chicken variety, in their caps.
That said, as Trump giveth, so does he taketh away.
The S&P 500 was up as much as 0.76% at one point during Friday's trading session, but stumbled after the U.S. president slammed the door shut on trade talks with Canada over its digital services tax.
Investors took the news in their stride. The index only dipped slightly, but that nonetheless shaved off some gains.
U.S. markets open just before Asia heads to bed. May it be in Trump's nature to be a giver, to borrow Chappell Roan's words — so Monday can end as well as it began.
New record for S&P 500. The broad-based index rose 0.52% to close at 6,173.07 Friday, surpassing its previous high of 6,147.43. U.S. futures ticked up Sunday evening stateside. The Stoxx Europe 600 popped 1.14% Friday as shares of Barclays and Deutsche Bank rallied to decade highs.
China confirms trade deal details with America. The framework covers the export of rare earth metals from China, and the easing of tech restrictions imposed by the U.S., according to a statement released by Beijing on Friday. Trump said the same day he can do "whatever" he wants with tariffs.
Talks with Canada 'terminated.' Trump on Friday abruptly announced that the U.S. is ending trade discussions over Ottawa's decision to impose a digital services tax on American tech firms, which will affect titans such as Amazon, Google and Meta.
U.S. consumers paid more for goods and services in May. The core personal consumption expenditures price index rose a seasonally adjusted 0.2% for the month, putting annual inflation at 2.7%. Both figures were 10 basis points higher than expected.
[PRO] Eyes on U.S. jobs numbers. June's nonfarm payrolls report comes out Thursday and could determine if the rally in U.S. markets continues. Investors will only have half a day to react: U.S. markets close early Thursday and are dark Friday.
China's biggest public AI drop since DeepSeek is about to hit the market
On Monday, Chinese technology giant Baidu plans to make its Ernie generative AI large language model open source, a move by China's tech sector that could be its biggest in the AI race since the emergence of DeepSeek.
"Baidu just threw a Molotov into the AI world," said Alec Strasmore, founder of AI advisory Epic Loot. "OpenAI, Anthropic, DeepSeek, all these guys who thought they were selling top-notch champagne are about to realize that Baidu will be giving away something just as powerful," Strasmore said, comparing Baidu's move to Costco creating Kirkland.