Markets React to Positive Trade Talk

Stocks pushed higher last week, spurred by the White House's reassuring comments that progress was being made with trade talks.

The Standard & Poor’s 500 Index gained 4.59 percent, while the Nasdaq Composite Index picked up 6.73 percent. The Dow Jones Industrial Average lagged, adding 2.48 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, increased by 2.86 percent.^1,2

Markets Rally

Markets opened the week lower as investors continued to fret about China trade tensions. But sentiment quickly shifted.³

Stocks rebounded Tuesday following news that the administration intended to de-escalate tensions with China over tariffs. The rally extended through two more consecutive sessions as investors responded favorably to reassuring comments from the administration.

Markets also were encouraged after the president said he had "no intention" of firing the Fed Chair Powell. They also liked hearing Treasury Secretary Scott Bessent’s comments that the U.S. had an "opportunity for a big deal” with a key trading partner.^4,5

Megacap tech stocks, which had been under pressure for several weeks, regained momentum during the week, leading the market’s advance.^6,7