America’s incredible stock market rebound is complete as S&P 500, Nasdaq hit record highs
(from CNN Friday)
Markets got another boost Friday after
China signaled it would reopen its rare earth market to the United States. The news came just hours after White House officials said the two sides had reached a deal — a major breakthrough following weeks of negotiations.
Despite a 10% universal tariff that remains in place, in addition to 50% tariffs on steel and aluminum, and 25% tariffs on autos and auto parts, markets have largely looked past trade in recent weeks, focusing instead on other reasons for optimism or concern.
Treasury Secretary Scott Bessent on Friday said he believes trade negotiations with other countries could be
“wrapped up” by Labor Day, providing a more relaxed framework for inking deals than the original July 9 deadline.
Bessent said in an interview on Fox Business that the United States has 18 “important trading partners” that it is seeking to make deals with. “If we can ink 10 or 12 of the important 18 … then I think we could have trade wrapped up by Labor Day,” he said, without specifying the countries.
A boom in AI, fueled by surging sales for Nvidia’s chips and a Republican-led effort to deregulate the industry, has been one of the primary catalysts that have fueled stocks and helped investors move beyond the trade war. Hopes for a rate cut from the Federal Reserve, backed by reasonably strong economic numbers and low inflation, have also helped stocks in recent months.