While the dollar remained around its lowest levels in almost three years, global equities rose to a new high on Friday, bolstered by market optimism amid indications of progress in US-China trade talks. Due in part to the growth of megacap firms like Nvidia and Amazon, the benchmark S&P 500 index and Nasdaq reached all-time highs.
After a tumultuous first half of the year, which was dominated by US President Donald Trump’s tariff announcement on April 2, the S&P 500 index and Nasdaq are on track for a weekly gain and are up around 5% this year overall. Set for a weekly rise, the pan-European STOXX 600 index was up 0.66% on the day.
The massive rise that began in early April has continued, according to James St. Aubin, Chief Investment Officer of Ocean Park Asset Management in Santa Monica, California. “It’s been quite an unexpected comeback and it continues, presuming that the tariff dispute is no longer an important problem in the psyche of the market.”
A trade deal between the US and China on Thursday over how to speed up rare earth exports to the US was seen favourably by investors as part of attempts to put an end to the tariff war between the two largest economies in the world. Trump has set a deadline of July 9 for the European Union and other nations to agree on lowering tariffs.
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