U.S. stocks surged midday, with the S&P 500 and Nasdaq reaching record highs, boosted by optimism over trade negotiations and expectations of interest rate cuts. Technology and financial sectors led the rally, supported by positive corporate news, regulatory changes, and strong earnings projections. Investors remain focused on upcoming economic data and the Federal Reserve’s next move.
The Nasdaq has soared 17.5% this quarter, followed by the S&P 500 with a 10.2% gain and the Dow Jones up 4.6%. However, the Dow still lags 2.3% below its December peak as investors assess policy risks and key trade deadlines.
All eyes are on the July 9 deadline for trade agreements. President Trump has floated the idea of adjusting tariffs, while Canada recently withdrew its proposed digital services tax targeting U.S. tech companies to help restart stalled negotiations.
Weaker economic reports have fueled speculation that Trump might replace Fed Chair Jerome Powell with someone more dovish, adding to expectations of early rate cuts. Powell and other Fed officials are scheduled to speak later this week, with markets watching closely for policy signals.
Upcoming data — including non-farm payrolls and ISM manufacturing and services reports — could influence the sustainability of the current rally. Weak numbers may further strengthen the case for rate cuts.
Technology stocks rose 0.69% at midday, driven by continued enthusiasm for AI innovation. Financials followed closely, up 0.7%, after banks passed the Fed’s stress tests. Health care and industrials posted modest gains of 0.27%, while consumer discretionary and real estate underperformed. Real estate fell 0.62% as investors rotated into higher-risk assets.
Juniper Networks jumped 8.3% after the U.S. Department of Justice approved Hewlett Packard Enterprise’s $14 billion acquisition. HPE shares climbed 9.6% on expectations of strong synergies. Oracle also made headlines, gaining 6.4% after forecasting cloud contracts projected to generate more than $30 billion starting in fiscal 2028.
In banking, Bank of America rose 0.8%, while JPMorgan Chase and Wells Fargo advanced 1.5% and 1.9%, respectively, driven by optimism around share buybacks post-stress tests. With both spot and futures markets at record levels, traders are watching the July 9 trade deadline, economic data releases, and Fed commentary to gauge the strength of this bull market.
Dip-buying continues to support stocks for now, but upcoming reports will be key in determining whether bulls can maintain momentum into the new quarter.
Also of note, James Hyerczyk, a seasoned technical analyst and educator with over 40 years of experience in market analysis and trading, continues to offer insights into price movements and chart patterns. He is the author of two books on technical analysis and is well-versed in both futures and equity markets.
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