Global equity markets soared to all-time highs on Friday, buoyed by renewed optimism over U.S.-China trade talks, easing Middle East tensions, and a strong rally in megacap tech stocks including Nvidia and Amazon.
The S&P 500 rose 0.62% to close at 6,178.95, while the Nasdaq Composite climbed 0.51% to 20,270.99 — both setting new records. The Dow Jones Industrial Average also gained 1.13%, closing at 43,879.23. European markets followed suit, with the STOXX 600 up 1.1% and London’s FTSE 100 rising 0.72%. The MSCI World Equity Index hit a record and posted a 3.3% weekly gain.
Asia’s rally lost momentum by day’s end, with shares finishing down 0.10%, despite hitting a three-year high earlier in the session.
“It’s a continuation of this monster rally since early April,” said James St. Aubin, CIO at Ocean Park Asset Management. “It’s been quite an improbable comeback… assuming that the tariff controversy is no longer a major issue in the psyche of the market.”
Investors were encouraged by a U.S.-China agreement on rare earth shipments, signaling a potential de-escalation in the trade war. U.S. President Donald Trump has set a July 9 deadline for the EU and other nations to reach a tariff-reduction agreement.
Sentiment also improved with the ceasefire between Iran and Israel, and speculation that Trump may soon name a more dovish candidate to replace Federal Reserve Chair Jerome Powell.
Data released Friday showed U.S. consumer spending fell by 0.1% in May, while inflation rose moderately — bolstering expectations of Federal Reserve rate cuts.
Meanwhile, the U.S. dollar hovered near its lowest levels in over 3.5 years, with the dollar index falling 0.05% to 97.322, marking its worst start to a year since the early 1970s. The euro rose to $1.1711, while the yen weakened to 144.725 per dollar.
Yields on U.S. 10-year Treasuries eased slightly to 4.246%, while German 30-year bonds headed for their biggest weekly rise in nearly four months on expectations of higher government borrowing.
In commodities, Brent crude edged up 0.13% to $67.82 per barrel, and WTI crude rose 0.25% to $65.40, though both benchmarks were set for their steepest weekly losses since March 2023 as fears of supply disruption faded. Spot gold dropped 1.64% to $3,273.28 an ounce.
