S&P 500 closes at record high on trade optimism and Fed rate cut hopes

From Financial Modeling Prep: 2025-07-01 05:36:00

The S&P 500 closed at a record high, fueled by fading trade war fears and expectations of a Fed rate cut. Q2 ended strong as investor sentiment improved due to trade breakthroughs and softening inflation.

Trade tensions eased with a U.S.-China agreement and Canada’s policy reversal, boosting market optimism and reducing tariff risks.

Big tech stocks like Meta Platforms and Robinhood soared on AI and crypto offerings, reshaping the sector’s outlook and driving all-time highs.

Fed rate cut hopes grow as weak spending and steady inflation signal potential policy flexibility by September, impacting equity pricing models.

Q3 outlook is positive, especially for tech and discretionary sectors, with key watchpoints on inflation, tech stock momentum, and U.S.-Canada trade negotiations. Investors remain cautiously optimistic amid market shifts.



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