S&P 500 Nears Record High Amid US-China Trade Talks

The S&P 500 is nearing its all-time high, currently about 2% below the record set in February, with optimism fueled by ongoing U.S.-China trade talks in London and expectations of moderate inflation data. Investors are encouraged by the 90-day economic truce between the U.S. and China, which has eased some tariffs and bolstered market confidence, contributing to positive momentum across major indices including the Nasdaq and Dow Jones. Market analysts from JPMorgan and others anticipate that the S&P 500 could surpass its previous peak within the week or next, provided that trade negotiations remain constructive and inflation figures align with forecasts. Despite some volatility risks linked to trade uncertainties and President Trump's unpredictable policy statements, the overall market sentiment remains cautiously bullish, supported by strong performances in sectors like technology and retail, exemplified by companies such as Nvidia, Tesla, Walmart, and Target. Global markets, including London's FTSE 100, are also showing gains amid the trade dialogue, with notable corporate moves like Qualcomm's acquisition bid further contributing to investor confidence. However, investors remain vigilant for any negative surprises from economic data or geopolitical developments that could derail the rally.