US stocks reached new peaks on Friday as optimism of relaxed trade policy and confidence about rate cuts by the Federal Reserve outweighed pessimistic economic data. The S&P 500 and the Nasdaq 100 rose 0.8% to a new record while the Dow gained 600 points. Commerce Secretary Lutnick stated that the US reached a trade agreement with China, consolidating the relief of lower tariffs and preventing rare earth shortages. Officials also hinted at progress in trade deals with ten other countries, suggesting that the White House grew some aversion to trade barriers. In turn, the Treasury removed the Section 899 tax from the upcoming tax bill, aiding foreign investment in the US. In the meantime, traders continued to favor bets of multiple Fed cuts this year after personal spending and income unexpectedly contracted in May, although the core PCE price accelerated. Nike surged 15% after delivering good results, and Amazon gained 2% after being upgraded by BNP Paribas Exane.
