Wall Street Hits Records on Trade Optimism & Rate‑Cut Hopes
U.S. markets rallied strongly: the S&P 500 and Nasdaq both touched new intraday record highs, while the Dow gained ~0.9%. Tech led the charge—Nvidia, Amazon, and Apple rallied, driven by renewed optimism around trade and dovish Fed expectations. Key triggers include better-than-expected Q1 forecasts from Nike and upbeat estimates from Micron. Markets are factoring in as much as a 72% probability of a rate cut by September, according to CME’s FedWatch tool. Improving U.S.–China relations—particularly around rare earths—and hopes of scrapping foreign investor tax proposals have added fuel to the rally.
Why it matters: Record rallies reflect strong investor confidence but also heighten sensitivity to economic or policy surprises. Tech and trade developments now hold outsized influence.
Extra insight: U.S. consumer spending fell in May, yet sentiment surveys are up—an unusual mix that keeps markets cautious
