Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) capped off the trading week by setting new all-time intraday highs as trade deal optimism climbs ahead of the August 1 deadline next week.
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This morning, President Trump teased trade deals with China, the United Kingdom, and the European Union. Trump is set to meet with European Commission President Ursula von der Leyen on Sunday and U.K. Prime Minister Keir Starmer on Monday. The U.S. will also begin another round of trade talks with China next week. Earlier this week, the Financial Times reported that the EU was close to cementing a 15% tariff rate while the UK previously agreed to a 10% baseline tariff.
European officials and diplomats boosted trade deal sentiment after saying that a trade deal with the U.S. could be reached as early as this weekend.
Canada, which is the second-largest single-country trading partner of the U.S., isn’t as fortunate. Trump said there is “not a lot of negotiating with Canada.” Other countries that don’t ink a deal with the U.S. will receive a tariff rate of 10%, 15%, or 50%. The 50% tariff rate will apply only to a few countries and could potentially affect Brazil.
The U.S. surpassed $100 billion in revenue for the first time during a fiscal year in June. The fiscal year ends in September, meaning that there are still three months remaining to set a higher record. Americans could possibly get a piece of that. “We’re thinking about that actually — we have so much money coming in, we’re thinking about a little rebate,” Trump said at the White House on Friday. “A little rebate for people of a certain income level might be very nice.”
Following Trump’s Fed headquarters tour with Jerome Powell, reports circulated that the Fed Chair had communicated to close contacts that he would serve the rest of his term in order to maintain Fed independence from politics. Despite earlier speculation, Trump explained during the tour that he wasn’t interested in firing Powell while continuing to press for lower interest rates. “To do that is a big move, and I just don’t think it’s necessary,” said Trump.
The S&P 500 (SPX) closed with a 0.40% gain while the Nasdaq 100 (NDX) returned 0.23%.
