Sign in Subscribe
Stock prices

Stocks Set Records as Trump Announces Trade Deals, Lowering Tariffs

Strategic Insights

— 2 min read

The U.S. stock market set more records on Wednesday after President Donald Trump announced a trade framework that would lower proposed tariffs on Japanese imports coming to the United States. The S&P 500 added 0.8% to its all-time high, while the Dow Jones Industrial Average rallied 507 points, or 1.1%, and the Nasdaq composite climbed 0.6% to hit its own record. Stocks jumped even more in Tokyo, where the Nikkei 225 rallied 3.5% after Trump's announcement. The trade deals, which also include a trade agreement with the Philippines, are seen as a sign of relief by investors, who had been concerned about the impact of tariffs on the global economy.

Key Takeaways:

  • The S&P 500 added 0.8% to its all-time high, with the Dow Jones Industrial Average rallying 507 points, or 1.1%, and the Nasdaq composite climbing 0.6% to hit its own record.
  • Trump's trade framework would lower proposed tariffs on Japanese imports coming to the United States to 15%, down from the 25% rate that Trump had earlier said would kick in on August 1.
  • Many of Trump's tariffs are currently on pause, giving time to reach deals with other countries that could lower the tax rates.
  • Tariffs are having an effect on big U.S. companies, with Hasbro taking a $1 billion non-cash hit to its results for the spring to write down the value of some of its assets following a review triggered by the implementation of tariffs.
  • The energy company GE Vernova jumped 14.6% after delivering a stronger profit than analysts expected and raising its forecasts for revenue from its power and electrification businesses.
  • Lamb Weston rallied 16.3% after the supplier of French fries and other potato products delivered better results for the latest quarter than analysts expected.
  • Several stocks jumped as traders search for the next "meme stock" that could ride a wave of online enthusiasm to high prices, with Krispy Kreme jumping nearly 39% shortly after trading began.
  • The S&P 500 rose 49.29 points to 6,358.91, while the Dow Jones Industrial Average jumped 507.85 to 45,010.29, and the Nasdaq composite gained 127.33 to 21,020.02.

Statistics:

  • The Dow Jones Industrial Average rallied 507.85 points to 45,010.29.
  • The S&P 500 rose 49.29 points to 6,358.91.
  • The Nasdaq composite gained 127.33 to 21,020.02.
  • The yield on the 10-year Treasury rose to 4.38% from 4.35% late Tuesday.
  • GE Vernova's stock jumped 14.6% after delivering a stronger profit than analysts expected.
  • Lamb Weston's stock rallied 16.3% after the supplier of French fries and other potato products delivered better results for the latest quarter than analysts expected.
  • Krispy Kreme's stock jumped nearly 39% shortly after trading began.

Sources:

  • "U.S. stocks set more records on Wednesday following a trade deal between the world's No. 1 and No. 4 economies, one that would lower proposed tariffs on Japanese imports coming to the United States." (New Delhi Times)

Read more