Wall Street rises on US-Japan trade deal, hopes for more tariff talks
The pact will slash tariffs on the Japanese auto sector to 15% from 27.5%, with duties on other goods also dropping to 15% from 25%.
At 9:41 a.m. ET, the S&P 500 (.SPX), opens new tab gained 20.11 points, or 0.31%, to 6,329.73 and the Nasdaq Composite (.IXIC), opens new tab gained 39.71 points, or 0.19%, to 20,932.40.
The Dow Jones Industrial Average (.DJI), opens new tab rose 215.38 points, or 0.48%, to 44,717.82, closing in on its all-time high.
Meanwhile, Wall Street's "fear gauge," the CBOE Volatility Index (.VIX), opens new tab, dipped to its lowest level in nearly two weeks.
As U.S. and EU officials head into crucial trade talks, hopes are high for a breakthrough agreement. However, the European Commission signaled it's ready to play hardball, preparing to seek approval for 93 billion euros ($109 billion) in counter-tariffs on American goods.
"The United States has been working very hard on trying to get a lot of trade deals in time before the August 1st deadline, and it seems like they're starting to get some momentum. So I do think this is a very positive sign," said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Investors are now laser-focused on earnings from the "Magnificent Seven" — the market's star performers who have powered stocks to record highs.
Tesla (TSLA.O), opens new tab and Alphabet (GOOGL.O), opens new tab are set to report after the bell on Wednesday. With AI optimism running high and valuations stretched, expectations for these tech giants are sky-high, leaving little margin for disappointment.
In earnings-focused moves, GE Vernova's (GEV.N), opens new tab shares climbed 13.7% to an all-time high, as the power equipment maker raised its current-year revenue and free cash flow forecasts after beating Wall Street estimates for second-quarter profit.
Texas Instruments (TXN.O), opens new tab tumbled 12.7% after its quarterly profit forecast failed to impress investors, as it pointed to weaker-than-expected demand for its analog chips from some customers and underscored tariff-related uncertainty.
The earnings also weighed on its peer analog chipmakers, with NXP Semiconductors (NXPI.O), opens new tab, Analog Devices (ADI.O), opens new tab and ON Semiconductor (ON.O), opens new tab falling between 3.5% and 5.6%.
Toymaker Hasbro (HAS.O), opens new tab slipped 2.4% even after raising its annual revenue forecast.
A 1.7% drop in AT&T (T.N), opens new tab kept the communications sector (.SPLRCL), opens new tab in the red, with all other sectors in positive territory. The company's stock dropped despite beating quarterly profit estimates.
In economic data, existing home sales numbers for June are due on the day. Thursday's weekly jobless claims numbers and S&P Global's flash PMI data will be closely assessed to gauge economic health in the wake of tariff uncertainties.
Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at 58%, according to the CME FedWatch tool.
The Fed's July meeting will follow on the heels of mounting concerns about its independence amid political interference and President Trump's persistent attacks on Chair Jerome Powell for his reluctance to cut rates.
Advancing issues outnumbered decliners by a 2.22-to-1 ratio on the NYSE and by a 1.76-to-1 ratio on the Nasdaq.
The S&P 500 posted 30 new 52-week highs and two new low, while the Nasdaq Composite recorded 48 new highs and eight new lows.
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Faith-based activist groups celebrate after Costco bails on selling abortion pill
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Putting customer needs before political ideology must remain Costco's priority.' Faith-based activists have celebrated the decision. 'We applaud Costco for doing the right thing by its shareholders and resisting activist calls to sell abortion drugs,' Alliance Defending Freedom Legal Counsel Michael Ross said in a statement Thursday. 'They have nothing to gain and much to lose by becoming abortion dispensaries.' 'We have this momentum,' Tim Schwarzenberger, director of corporate engagement at Inspire Investing, the world's largest faith-based ETF provider, told Bloomberg. 'Now there is a chance to turn to some of the other retailers.' 'We are so grateful that Costco—a company that serves families, especially large ones—has decided to remain a wholesale store, not become an abortion facility,' Mary Szoch, director of the Center for Human Dignity at evangelical think-tank Family Research Council, said in a statement on X. 'What a win for America! Great job, @Costco!" 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Hedge funds shift bets to double down on Big Tech amid AI boom
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