S&P 500, Nasdaq Hit Records on China Trade Deal

U.S. stock markets closed at record highs, with the S&P 500 and Nasdaq both reaching new peaks, driven by optimism over a newly announced trade agreement with China and expectations of Federal Reserve rate cuts. President Trump ended trade talks with Canada over its digital services tax on U.S. tech firms, but investor sentiment stayed upbeat, hoping for further deals with other major partners. Economic data showed unexpected contractions in both consumer income and spending for May, while inflation remained just above the Fed's 2% target. Corporate earnings were strong, notably from Nike and Amazon, and momentum in the technology sector, including advances in artificial intelligence, contributed to market gains. The markets demonstrated resilience by sharply recovering from bear market lows seen months earlier, even as some caution persists due to weak consumer spending and potential inflation pressures. Despite ongoing tariff uncertainties and geopolitical tensions in the Middle East, all major indexes posted robust weekly gains as the quarter ended.