Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed with solid gains during Wednesday’s trading session.
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The benchmark ETFs received a premarket boost after President Trump announced trade deals with Japan and Indonesia. Japanese imports will be subject to a 15% tariff, down from the 25% that Trump previously threatened. This is a major win for both countries, as Japan was the fifth-largest U.S. goods trading partner in 2024. In addition, Japan has agreed to invest $550 billion into the U.S. with the U.S. receiving 90% of the profits. The country’s automotive imports will also be subject to a 15% tariff, down from 27.5%.
Indonesia’s imported goods will be subject to a 19% tariff, down from 32%. The country has agreed to remove almost all of its trade barriers against the U.S. and will supply the U.S. with critical minerals while purchasing agricultural goods, energy, and Boeing (BA) aircraft.
The European Union could be next to announce a trade deal, according to the Financial Times. The 27-nation bloc is considering a deal that would set its tariff level at 15%, half of the 30% it would face if it is unable to ink a deal by August 1. The deal would also make certain products from both sides exempt from tariffs, such as aircraft, medical devices, and spirits.
Meanwhile, Trump and the White House released their AI Action Plan, which tackles innovation, infrastructure, and international diplomacy. It also calls for increased spending for AI and energy infrastructure, as well as security measures and unbiased chatbots. “Whoever has the largest AI ecosystem will set global AI standards and reap broad economic and military benefits,” read the plan.
Finally, June’s existing home sales sank to a 9-month low, coming in at a seasonally adjusted annual rate of 3.93 million. “Housing in our Country is lagging because Jerome ‘Too Late’ Powell refuses to lower Interest Rates,” said Trump in a Truth Social post. “Families are being hurt because Interest Rates are too high, and even our Country is having to pay a higher Rate than it should be because of ‘Too Late.'” National Association of Realtors chief economist Lawrence Yun added that 160,000 renters could become first-time homeowners if the average mortgage rate fell to 6%.
The S&P 500 (SPX) finished with a 0.79% gain while the Nasdaq 100 (QQQ) closed higher by 0.43%.
