Shares rally on global trade optimism, boosted by record highs and dollar weakening

From Yahoo Finance: 2025-06-26 22:06:00

Global shares hit record highs on Friday, boosted by optimism over U.S.-China trade talks. The S&P 500 and Nasdaq reached all-time highs, driven by megacap growth stocks. The Dow Jones Industrial Average rose 1% to 43,819.27. The pan-European STOXX 600 index finished up 1.1%, with the MSCI World Equity index at 916.39.

Investors saw a positive sign in a trade agreement between the U.S. and China on rare earth shipments. Trump set July 9 as the deadline for the EU and other countries to reduce tariffs. Traders bet on U.S. rate cuts amid a possible new Federal Reserve chair announcement. U.S. consumer spending fell unexpectedly by 0.1% in May.

The dollar traded at multiyear lows against the euro and sterling, near its lowest level in 3-1/2 years. The dollar index was at 97.34, its worst start to a year since the early 1970s. Benchmark U.S. 10-year notes rose to 4.277%. Oil prices rose slightly but were on track for the steepest weekly decline since March 2023.

Read more: Shares rally on China-US trade optimism, dollar trades at multiyear lows