US stocks closed at record highs on Friday driven by optimism over pending trade agreements and rising expectations for interest rate cuts, as investors looked past President Donald Trump’s comments about halting trade talks with Canada. The S&P 500 gained 0.5%, closing above its February peak, while the Nasdaq 100 also advanced 0.5% to a new high.
The Dow Jones rose by 432 points. Earlier in the day, markets surged on encouraging news of trade progress with key partners, including a framework agreement with China. Although Trump’s unexpected remarks on Canada briefly dented sentiment, they failed to derail the broader rally. The market’s strong rebound from April lows has been driven by easing inflation pressures and resilient corporate earnings. Supporting the positive tone, data showed an uptick in consumer sentiment and only a slight rise in core PCE inflation. Shares of Nike jumped 13% after an upbeat earnings report, while Amazon climbed 0.5% following an analyst upgrade.
