U.S. stocks rise significantly midday, with the S&P 500 and Nasdaq hitting record highs, fueled by optimism on trade negotiations and expectations of interest rate cuts. Key sectors include technology and financials, enhanced by positive developments like changes in corporate regulations and new revenue projections from major firms. Market sentiment will hinge on upcoming economic data and the Federal Reserve’s response.
U.S. stocks are enjoying an uptick midday, propelling the S&P 500 and the Nasdaq into record territory. The surge is largely attributed to optimism surrounding trade talks and expectations of further interest rate cuts as the quarter draws to a close.
The Nasdaq has seen an impressive 17.5% rise this quarter, with the S&P 500 following closely behind with a 10.2% gain, and the Dow increasing by 4.6%. However, the Dow is still trailing 2.3% behind its December peak, as traders assess potential policy shifts and looming trade deal deadlines.
Attention is currently on the July 9 deadline for possible trade agreements. President Trump has suggested the possibility of extending or accelerating tariffs, while Canada has rescinded its planned digital services tax aimed at U.S. tech firms to facilitate stalled negotiations with the U.S.
Additionally, softer economic reports have raised speculation that Trump might replace Fed Chair Jerome Powell with someone seen as more dovish. This has led many to predict earlier-than-expected rate cuts from the Federal Reserve. Powell, along with other Fed officials, is expected to speak later this week, with traders keenly awaiting any policy signals.
Market watchers are also eyeing upcoming data, including the non-farm payrolls report and ISM manufacturing/service figures, which could influence whether the current rally can maintain its momentum. Should the figures lean towards the weak side, hopes for rate cuts will likely be reinforced.
Technology stocks lead midday trading, up 0.69% thanks to ongoing enthusiasm for AI advancements, while financials are also performing well with a 0.7% increase following results from the Fed’s stress tests. Health care and industrials are up slightly by 0.27%, whereas consumer discretionary and real estate sectors are lagging behind, particularly real estate which is down 0.62% as traders shift focus to higher-beta options.
Juniper Networks has jumped by 8.3% after the U.S. Justice Department approved Hewlett Packard Enterprise’s $14 billion acquisition, leading HPE shares to rise by 9.6% as the market factors in potential synergies from the deal. Oracle has also made headlines, gaining 6.4%, driven by its forecast for new cloud service agreements expected to generate over $30 billion starting in fiscal 2028.
In financials, Bank of America is up 0.8%, while JPMorgan Chase and Wells Fargo have increased by 1.5% and 1.9%, respectively, as optimism grows around buybacks following stress tests. As both cash and futures markets hover at record levels, traders are keeping a close eye on the July 9 trade deadline, forthcoming economic reports, and commentary from the Fed to judge the resilience of this bull run.
Dip buying continues to support the market for the time being, but the upcoming data will be crucial in determining whether buyers can maintain control heading into the new quarter.
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