"US Stocks Soar on Heels of US-China Trade Deal Announcement" Podcast By cover art

"US Stocks Soar on Heels of US-China Trade Deal Announcement"

"US Stocks Soar on Heels of US-China Trade Deal Announcement"

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 Today, the US stock market experienced a significant surge, driven largely by the announcement of a new trade deal between the United States and China. The S&P 500 reached a new all-time high of 6,184 points, jumping 0.7 percent over the past three hours. The Nasdaq also hit an all-time high at 20,310, rising 0.65 percent since the market opened. The Dow Jones Industrial Average was up 1.1 percent, nearing its own record high.

The rally was primarily fueled by President Donald Trump's announcement on Thursday that his administration had signed a trade deal with China. This development has raised hopes for lower tariffs and improved access to Chinese rare-earth minerals, which has boosted investor confidence.

In terms of sector performance, technology stocks were mixed. While shares of Nvidia and Alphabet were down about 1 percent, Tesla saw a significant gain of nearly 4 percent after launching its driverless robotaxi service in Austin, Texas. Other major technology companies like Microsoft, Apple, Amazon, Meta Platforms, and Broadcom experienced slight declines.

Nike was a notable gainer, with its shares soaring in premarket trading after the company reported quarterly results that exceeded analysts' estimates.

On the economic data front, investors are awaiting the release of the Personal Consumption Expenditures (PCE) figures, which are expected to show an increase in May inflation.

Looking forward, US stock futures are pointing slightly higher, indicating a positive start to the next trading day. Key events to watch include further details on the US-China trade agreement and upcoming earnings releases. The yield on the ten-year Treasury note is at 4.35 percent, and the US dollar index is up 0.5 percent, trading at its highest level of the month.

Gold futures are down slightly, trading around 3,300 dollars per ounce, as some investors turn to traditional safe havens amid geopolitical uncertainty. Bitcoin is trading around 107,000 dollars, down slightly from previous levels.

Overall, today's market was driven by optimism over the new trade deal, which has significantly lifted investor sentiment after a tumultuous period in April marked by significant market declines.
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