The stock market hit a record high on Friday morning as traders were buoyed by hope that the US is nearing trade deals with a number of countries.
The S&P 500 and the tech-heavy Nasdaq index both hit new records shortly after markets opened as investors shrugged off trade war worries and concerns about conflict in the Middle East.
President Trump announced on Thursday that a trade deal had been signed with China, paving the way for a scaling back of tariffs on Chinese imports and reciprocal measures on US exports.
Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent added that the US is also close to signing deals with more than a dozen other trading partners.
‘I think we could have trade wrapped up by Labor Day,’ Bessent told Fox Business on Friday.
The comments suggest the White House is not committed to reimposing its full ‘Liberation Day’ tariffs on the initial July 9 deadline after a 90-day pause for negotiations.
White House press secretary Karoline Leavitt told reporters on Thursday that the deadline was ‘not critical.’
It comes as the latest inflation figures also show current tariffs having little impact on price stability for the moment.
The S&P 500 hit a new record high on Friday morning
Prices rose 2.3 percent in the year through May, according to the latest personal-consumption expenditures price index released on Friday.
This was a slight uptick from the month before, when prices rose 2.1 percent compared to the same time last year.
A US-brokered ceasefire between Israel and Iran also saw equities rise this week, as investors felt reassured that a wider conflict could be avoided.
The new record highs for markets come after a 20 percent rout following the announcement of Trump’s ‘Liberation Day’ tariffs on April 2.
