S&P 500, Nasdaq hit record highs on renewed AI bets, rate-cut hope
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The S&P 500 and Nasdaq Composite hit all-time highs on Friday as megacap stocks surged on renewed AI enthusiasm and the prospect of a looser monetary policy, powering a recovery in U.S. stocks from a months-long rout.The benchmark index rose 0.2% to 6,154.81 points, surpassing the previous peak of 6,147.43 on February 19, while the tech-heavy Nasdaq gained 0.3% to 20,229.31 points, exceeding its record high of 20,204.58 on December 16.Markets rallied this week as an upbeat forecast from chipmaker Micron brought back investor confidence around artificial intelligence, while AI bellwether Nvidia hit a record high to reclaim its position as the world's most valuable company.Risk appetite also benefited from a U.S.-brokered ceasefire to a 12-day air battle between Israel and Iran that sparked a jump in crude prices and raised worries of higher inflation.Dovish remarks from Federal Reserve policymakers have also aided sentiment.Trump's April 2 "reciprocal tariffs" on major trading partners and their chaotic rollout had put the S&P 500 within a striking distance of confirming a bear market when it ended down 19% from its February 19 record closing high.The Nasdaq had tumbled 26.7% from its previous peak, marking a bear market days after Trump's "Liberation Day" on April 2.Since then, U.S. trade deals with the UK and China have firmed up market expectations for more such agreements on the hopes that a global recession could be avoided.The S&P 500 has surged more than 23.5% and the Nasdaq about 32% since their recent lowest close on April 8, largely powered by a handful of megacap stocks such as Microsoft, Nvidia, Meta Platforms and Amazon.If the Nasdaq closes above the December 16 record close at 20,173.89, it would be the end of the bear market and start of a new bull market, according to common definitions.A bear market is defined as a 20% decline from a record high close, on a closing basis.Both the Nasdaq and S&P 500 have gained 4.4% this year as of Thursday's close. The blue-chip Dow has risen about 2% this year and remains about 3.7% below its all-time peak.
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Time of India
13 minutes ago
- Time of India
In 24 hours: Trump's 'full barrier' trade pitch to India, pact with China, cold shoulder to Canada - What's next?
With the Iran–Israel war seemingly in his rear-view mirror, US President Donald Trump has swiftly reset his global focus—once again time zeroing in on trade, tariffs and new deals. In the past 24 hours, Trump has dramatically suspended trade talks with Canada over its digital services tax, vaguely confirmed a fresh agreement with China, and teased a 'very big' breakthrough soon with India. Central to this flurry of announcements is his revived strategy of issuing reciprocal tariffs—by letter—to nations wishing to access the US market. Trump's decision to halt negotiations with Canada came after Ottawa unveiled a 3 per cent levy on major US tech firms, which he denounced as 'a direct and blatant attack on our country.' He declared via social media that he would determine and impose appropriate tariffs within a week, citing the US's dominant position in the relationship. Meanwhile, officials in Washington emphasise that Canada holds more to lose, reinforcing Trump's image of maximum leverage. But Trump also struck a softer tone on India, calling a potential trade deal 'very big.' He hinted this could result in sweeping access for US businesses, dismantling barriers that have thus far kept them at bay: 'Right now, it's restricted. You can't walk in there… we agree that going to India and trade…' He added that the China deal was already underway, giving US firms a shot at rare earths and other vital commodities, though details remain under wraps. Trump tariff : What happened in the last 24 hours President Donald Trump's trade agenda took a dramatic turn over the past 24 hours, as he announced a series of sweeping moves on tariffs, suspended trade talks with Canada, signalled a breakthrough with China, and hinted at a 'very big' deal with India. The moves mark a sharp escalation in his second-term strategy to assert US dominance over global trade, even as allies and rivals alike push back. Trump halts Canada trade talks over digital tax Trump stunned officials on both sides of the border by immediately halting trade negotiations with Canada. 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,' Trump posted on his social media network. 'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.' Canada's new digital services tax, due to take effect Monday, imposes a 3% levy on tech giants like Amazon, Google, Meta and Airbnb — applying retroactively and totalling nearly \$2 billion in US company obligations. 'We have all the cards,' says Trump on Canada Speaking from the White House, Trump reinforced his hardline stance. 'They did something with our tech companies today trying to copy Europe. It's not going to work out well for Europe either. And it's not going to work out well for Canada. They were foolish to do it,' he said. When asked if Canada could reverse his decision, Trump responded, 'No… It doesn't matter to me. We have all the cards.' Tariff deadline looms on July 9 The broader context is Trump's push to impose reciprocal tariffs — some as high as 50% — on countries with whom the US runs a trade deficit. The 90-day negotiation window, set to expire on July 9, could usher in a new wave of tariffs. 'We have 200 countries, you could say 200 countries plus. You can't do that,' Trump said. 'So at a certain point over the next week and a half or so, or maybe before we're going to send out a letter.' Canadian PM Carney: 'It's a negotiation' Canadian Prime Minister Mark Carney sought to downplay tensions, saying, 'We will continue to conduct these complex negotiations in the best interests of Canadians. It's a negotiation.' But Trump appears unmoved, accusing Canada of levying 'very, very severe' taxes on American companies, including tariffs of up to 400% on dairy products. Digital services tax: The flashpoint The Canadian tax mirrors EU regulations and specifically targets companies with significant online revenues generated from Canadian users. Trump blasted the policy as 'a direct and blatant attack on our country.' Matt Schruers, head of the Computer & Communications Industry Association, praised Trump's swift response: 'We appreciate the Administration's decisive response to Canada's discriminatory tax on US digital exports.' 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But as of this moment, we agree that going to India and trade…' 'A very big one deal' with India In remarks during the 'Big Beautiful Bill' event, Trump said: 'We have one coming up, maybe with India. Very big one. Where we're going to open up India, in the China deal, we're starting to open up China.' Commerce Secretary Howard Lutnick echoed that sentiment, saying: 'You should expect a deal between the United States and India in the not-too-distant future because I think we found a place that really works for both countries.' Commerce minister Piyush Goyal confirmed talks were ongoing, stressing that the goal was a 'fair, equitable and balanced agreement.' US-China pact confirmed, details sparse Trump also confirmed that a deal had been signed with China 'the other day,' though details remain limited. China's Commerce Ministry acknowledged the agreement, mentioning a review of rare earth exports, but offered no timeline. 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Economic Times
16 minutes ago
- Economic Times
S&P 500, Nasdaq hit record closing highs amid trade negotiations, rate cut bets
Volume on U.S. exchanges was 22.07 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days. Wall Street surged on Friday, propelling the S&P 500 and Nasdaq to record highs amid trade optimism and expectations of Federal Reserve rate cuts. Despite a brief setback caused by President Trump's termination of trade talks with Canada, all major indexes posted weekly gains. Economic data, including consumer spending and sentiment reports, further solidified expectations for monetary easing. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads NEW YORK: Wall Street extended its rally on Friday, sending S&P 500 and Nasdaq to all-time closing highs as trade deal hopes fueled investor risk appetite and economic data helped solidify expectations for rate cuts from the U.S. Federal pared gains after U.S. President Donald Trump terminated trade negotiations with Canada in response to its digital tax on technology so, all three major U.S. stock indexes posted weekly gains. Upon reaching its record closing high, the tech-heavy Nasdaq confirmed it entered a bull market when it touched its post "liberation day" trough on April blue-chip Dow remained 2.7% below its record closing high reached on December 4."This market's been pretty resilient," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "Investors are riding momentum and looking for breakouts.""They don't want to get caught on the wrong side of this thing," Carlson added. "Many investors already have missed out. And now you have the S&P flirting with an all-time high."The Personal Consumption Expenditures report from the Commerce Department showed consumer income and spending unexpectedly contracted in May. And while tariffs have yet to affect price growth, inflation continues to hover above the Fed's 2% annual inflation target.A separate report from the University of Michigan confirmed consumer sentiment has improved this month, but remains well below December's post-election markets have priced in a 76% likelihood that the Fed will implement its first rate cut of the year in September, with a smaller, 19% probability of a rate cut coming as soon as July, according to CME's FedWatch and Beijing reached an agreement to expedite rare-earth shipments from China to the U.S., a White House official said, well ahead of the July 9 expiration of the 90-day postponement of U.S. President Donald Trump's "reciprocal" U.S. Treasury Secretary Scott Bessent said the administration's trade deals with 18 of the main U.S. trading partners could be done by the September 1 Labor Day Dow Jones Industrial Average rose 432.43 points, or 1.00%, to 43,819.27, the S&P 500 gained 32.05 points, or 0.52%, to 6,173.07 and the Nasdaq Composite gained 105.55 points, or 0.52%, to 20, the 11 major sectors of the S&P 500, consumer discretionary enjoyed the biggest percentage gain, while energy shares were the laggards. Chipmaker Micron's MU.O upbeat forecast revived investor confidence in artificial intelligence-related stocks, while Nvidia NVDA.O rose 1.8%, edging closer to $4 trillion market capitalization after reclaiming its position as the world's most valuable shares NKE.N jumped 15.2% after forecasting a smaller-than-expected drop in first-quarter revenue. Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the were 347 new highs and 55 new lows on the NYSE. On the Nasdaq, 2,111 stocks rose and 2,342 fell as declining issues outnumbered advancers by a 1.11-to-1 S&P 500 posted 35 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 101 new highs and 68 new on U.S. exchanges was 22.07 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days.
Time of India
20 minutes ago
- Time of India
S&P 500, Nasdaq hit record closing highs amid trade negotiations, rate cut bets
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel NEW YORK: Wall Street extended its rally on Friday, sending S&P 500 and Nasdaq to all-time closing highs as trade deal hopes fueled investor risk appetite and economic data helped solidify expectations for rate cuts from the U.S. Federal pared gains after U.S. President Donald Trump terminated trade negotiations with Canada in response to its digital tax on technology so, all three major U.S. stock indexes posted weekly gains. Upon reaching its record closing high, the tech-heavy Nasdaq confirmed it entered a bull market when it touched its post "liberation day" trough on April blue-chip Dow remained 2.7% below its record closing high reached on December 4."This market's been pretty resilient," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "Investors are riding momentum and looking for breakouts.""They don't want to get caught on the wrong side of this thing," Carlson added. "Many investors already have missed out. And now you have the S&P flirting with an all-time high."The Personal Consumption Expenditures report from the Commerce Department showed consumer income and spending unexpectedly contracted in May. And while tariffs have yet to affect price growth, inflation continues to hover above the Fed's 2% annual inflation target.A separate report from the University of Michigan confirmed consumer sentiment has improved this month, but remains well below December's post-election markets have priced in a 76% likelihood that the Fed will implement its first rate cut of the year in September, with a smaller, 19% probability of a rate cut coming as soon as July, according to CME's FedWatch and Beijing reached an agreement to expedite rare-earth shipments from China to the U.S., a White House official said, well ahead of the July 9 expiration of the 90-day postponement of U.S. President Donald Trump's "reciprocal" U.S. Treasury Secretary Scott Bessent said the administration's trade deals with 18 of the main U.S. trading partners could be done by the September 1 Labor Day Dow Jones Industrial Average rose 432.43 points, or 1.00%, to 43,819.27, the S&P 500 gained 32.05 points, or 0.52%, to 6,173.07 and the Nasdaq Composite gained 105.55 points, or 0.52%, to 20, the 11 major sectors of the S&P 500, consumer discretionary enjoyed the biggest percentage gain, while energy shares were the laggards. Chipmaker Micron's MU.O upbeat forecast revived investor confidence in artificial intelligence-related stocks, while Nvidia NVDA.O rose 1.8%, edging closer to $4 trillion market capitalization after reclaiming its position as the world's most valuable shares NKE.N jumped 15.2% after forecasting a smaller-than-expected drop in first-quarter revenue. Advancing issues outnumbered decliners by a 1.29-to-1 ratio on the were 347 new highs and 55 new lows on the NYSE. On the Nasdaq, 2,111 stocks rose and 2,342 fell as declining issues outnumbered advancers by a 1.11-to-1 S&P 500 posted 35 new 52-week highs and 6 new lows while the Nasdaq Composite recorded 101 new highs and 68 new on U.S. exchanges was 22.07 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days.
