Wall Street Has Gone Euphoric
- 29.06.2025, 8:54
The Dow Jones hit a 3-month high.
At the close of trading on Friday on the New York Stock Exchange, the Dow Jones index rose by 1%, reaching a 3-month high, the NASDAQ 100 index rose by 0.4%. The S&P 500 index rose 0.52% to close at record highs. The index recovered from a sharp intraday drop after President Trump pulled out of trade talks with Canada, renewing fears of a trade war, Details wrote.
The S&P 500 gained 3.4% for the week, the NASDAQ 100 added 3.75% and the Dow Jones rose 3.9%.
U.S. President Donald Trump said Friday that he was pulling out of trade talks with Canada because of a series of moves by Ottawa.
"We are canceling all trade discussions with Canada, the decision is effective immediately," he wrote on the social media network Truth Social.
"Over the next seven days we will let Canada know the duties it will be paying to do business with the United States," Trump continued.
He noted that he went to such measures after Washington became aware of Canada's imposition of taxes on digital services imposed on US companies. Trump compared the tax to practices implemented by the EU.
The sentiment was bolstered by an ongoing truce between Israel and Iran, as well as a U.S. agreement with China on how to speed up the supply of rare earth materials that are critical to a number of industries.
In addition, White House press secretary Carolyn Levitt suggested that President Donald Trump may extend his 90-day pause in reciprocal tariffs beyond a self-imposed deadline early next month, easing tensions around the Trump administration's erratic trade policies.
With geopolitical and trade tensions easing, attention has largely shifted to the state of the U.S. economy and the Federal Reserve's response.
"The market is showing signs of complacency. Among a range of potential risks - be it trade talks, an intensifying macroeconomic slowdown, geopolitical tensions, a growing budget deficit or rising interest rates - market participants seem to be pricing in an optimistic outcome," said Raphael Tuin, head of capital market strategies at Tikehau Capital.