Two months ago, the markets seemed to be in the crisis when investors desperate the effects of President Donald Trump’s comprehensive tariffs. Now the markets are cheering.
On Friday morning, the S&P 500 in New York was achieved a new all -time high of 6,184 points when the stock index rose by 0.7% in the past three hours. The Nasdaq An all -time high of 20,310 also reached, since it rose by 0.65% since the markets opened. The Dow Jones rose by 1.1% and flirted with its own recording.
The rally came after Trump stated on Thursday at an event of the White House that his government had just signed a trade agreement with China. The 47th President initially provided no details, but the finance minister Scott Bessent said about on Friday during an interview fox Business network that he expected China’s supply with minerals from rare earths, later to be inflicted to the USA confirmed That the People’s Republic will accelerate its export of minerals such as dyprosium and terbium that are used for heat -resistant magnets.
Bessent also said that the United States has 18 “important trading partners” with which the federal government is negotiating. He said that he would expect these business to be done by the day of work, a longer timeline than the first period on July 9, which he had previously prescribed.
The euphoric Friday of the stock markets is a welcome change for Trump management. Shortly after the inauguration of the President on January 20, the investors urged the markets to new heights in February, since the economic position of Trump’s economy would increase the economy.
In the midst of the government’s chaotic cuts in the federal government, led by the employee Tesla CEO Elon Musk, markets slipped. In April, market sales became even more dramatic when Trump unveiled a heavy series of tariffs for the largest trading partners in the United States. Ten days after Trump’s announcement on April 2, which he regarded as a “liberation day”, global stocks Barrack 10 trillion dollars.
The stock market market rose to some of the worst in the USA StoryAnd the withdrawal during Trump’s first 100 days in office was the worst S&P 500 start At a term of office of the President, since Gerald Ford and the fifth worst have been in office since 1928.
The chaos seeped into the Bond marketsSince the interest rates for 20-year-old US public prosecutor’s office rose, a signal for the lack of trust from investors became the debts of the US government. The bond market turbulence Reports Trump’s government prompted himself to withdraw from some of his more aggressive trade war rhetoric. And during the 47th president sometimes returned to bombastic threats to China and other large trading partners on social media, his government worked on strike and ward off a broader economic film in the USA
By the beginning of May, the S&P 500 had regained the losses that she had suffered after the “Liberation Day”. And then the stock index continued its upward march when the inflation and other indicators showed that Trump’s tariff war had not yet leaked through the economy.
In June the Bureau of Labor Statistics released A report that inflation according to Trump’s tariff was not sensibly increased. In April, inflation was 2.3%and in May the rate only rose 0.1%to 2.4%.
Update, June 27, 2025: In more context about Trump’s trade war and withdrawal from his most aggressive rhetoric in connection with tariffs.
