U.S. stocks surged to new highs after a trade deal was announced between the U.S. and Japan, lowering proposed tariffs on Japanese imports. The S&P 500, Dow Jones, and Nasdaq all hit record highs. Tokyo’s Nikkei 225 also rallied 3.5% in response to the trade framework, which includes a 15% tax on imports from Japan.

Despite concerns about tariffs driving up inflation and slowing the economy, U.S. markets reacted positively. Many companies, like Hasbro and Texas Instruments, reported impacts from tariffs on their profits. Hasbro took a $1 billion hit due to tariffs, while Texas Instruments saw its stock fall after a cautious outlook related to tariffs.

Despite these challenges, GE Vernova and Lamb Weston bucked the trend with strong earnings. GE Vernova raised revenue forecasts, while Lamb Weston announced cost-cutting measures. Elsewhere, meme stocks like Krispy Kreme and GoPro saw volatile trading, while Opendoor Technologies lost momentum.

Overall, Wall Street saw gains, with the S&P 500, Dow Jones, and Nasdaq all closing higher. International markets also rose in response to the trade deals. Japan’s market had a significant rally, with other markets like Hong Kong and France also seeing gains. Treasury yields increased slightly, with the 10-year Treasury rising to 4.38%.

Read more at Yahoo Finance: US stocks hit more records following US-Japan trade deal